Taiwan ROC & Hong Kong

Postwar History

Republic of China 1912 -

First republic in AsiaFirst president: Sun Yat-sen (1866 -

1925)

Chiang Kai-shek

First constitutional president 1948 - 1975

Defeated by CCP in 1949Retreated to TaiwanAuthoritarian rule for a

quarter century

ROC Government

President (4-year term after 1996)The Five ``Yuan”:

Executive Yuan Legislative Yuan Judicial Yuan Examination Yuan Control Yuan

Provinces

Taiwan before 1949

Immigration from mainland China for centuries (Fujian and Hakka)

1885, promoted from prefecture to province

1895, ceded to Japan1945, returned to Republic of China``Taiwanese” versus ``mainlanders”

Taiwan & Islands

Area: 13,900 square miles

Population: 22.7 million

Fujian 70%Hakka 15%“mainlanders”

13%

Comparison

area mainland: 9,600,000 km2

Taiwan: 36,000 km2

population mainland: 1.3 billion Taiwan: 22.7 million

Comparison

nominal GDP of 2002 mainland: 1,237 billion US$ Taiwan: 286 billion US$

trade volume of 2002 mainland: 621 billion US$ Taiwan: 243 billion US$

Time-lagged development

Land reform in Taiwan (1950s) and in mainland (1970s)

economic takeoff in Taiwan (1950s- ) and in mainland (1980s- )

export promotion policies tariff rebates (1950s vs. 1980s) special economic zones (1960s vs.

1980s)

Time-lagged development

Promotion of small and medium size enterprises in Taiwan (1960s- ) and in mainland (1980s- )

currency exchange rate 1960s vs. 1990s

Popular elections at the basic level

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-10

0

10

20

30

40

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Taiwan & Mainland's Annual Export Growth Rate

Chiang’s One-China Policy

``Mainland was temporarily usurped by communist bandits”

``Gloriously retake the mainland”Refused diplomatic relations with

any country that recognized PRCROC was a permanent member of

UN Security Council until 1971

Lee Teng-hui (1923 - )

Succeeded Chiang Kai-shek’s son as president of ROC and chairman of GMD in 1988

Became the first popularly elected president of ROC in 1996

Helped Democratic Progressive Party gain power in 2000

Chen Shui-bian (1950 - )

Leader of the Democratic Progressive Party

Inauguration in 2000

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-2

-1

0

1

2

3

4

5

6

7

8

9

10

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12

13

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Taiwan's Economic Growth Rate

Taiwan's Unemployment Rate

0

1

2

3

4

5

6

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Taiwan's Export to Mainland (billion US$)

0

5

10

15

20

25

30

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Taiwan's Investment on Mainland (million US$)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Hong Kong

Land & People

422 square miles Hong Kong Island Kowloon

Peninsular New Territories Outlying islands

7 million residents 95% Chinese

Brief History

HK Island was occupied by UK in 1841New Territories on 99-year lease in 1898Occupied by Japan during World War IIShanghai enterprises fled CCP forces in

late 1940s (industrialization of HK)One of the four ``Asian Little Tigers”

Export & GDP 1960 - 1999

Handover to PRC

Deng Xiaoping: “1 country, 2 systems”PRC Constitution of 1982: S.A.R.PRC & UK Joint Declaration in 19847th National People’s Congress adopted

Basic Law of HKSAR in Beijing in 1990Became Hong Kong Special

Administrative Region of PRC in July 1, 1997

``1 Country, 2 Systems”

Capitalist system and way of life shall remain unchanged for 50 years (B.L. A5)

HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)

PRC Central Government responsible for defense and foreign affairs (B.L. A13-14)