TAIWAN

Taiwan is an island country off the east coast of China. Japan lies to the northeast and the Philippine Islands to the south.

Taiwan is located on the Tropic of Cancer. Not surprisingly, much of the country has a warm, humid climate. Winter monsoon winds bring especially heavy rains. Because more than half of Taiwan is mountainous, upper elevations have a more temperate climate.

The formal name of Taiwan is the REPUBLIC OF CHINA (ROC).Its capital city is Taipei.

Taiwan is DENSELY populated with approximately 24,000,000 people living on this island nation.Mandarin Chinese is the predominate language of Taiwan. About a third of Taiwanese practice Buddhism, with only about 4% are Christian.

Taiwan is the most populous country with the largest economy of any country NOT a member of the United Nations (UN). Taiwan, known formally as the REPUBLIC OF CHINA (ROC) was expelled from the UN when THE PEOPLE’S REPUBLIC OF CHINA joined the UN in 1971.

A FREE MARKET ECONOMY HAS TRANSFORMED TAIWAN INTO AN ECONOMIC POWERHOUSE!Despite a lack of space, few mineral resources, and being very densely populated, Taiwan has created a vibrant economy where the Taiwanese people enjoy a high standard-of-living.Taiwan is blessed to have an abundance of high tech industry.Taiwan has the 22nd largest economy in the world.Taiwanese are some of the most educated people with a higher percentage of people holding graduate degrees than any other country in the world.

So, there are two (2) Chinas in the world…which is a bit confusing. One is huge and ruled by oppressive government; the other is small, free, and prosperous. How did this happen?

BRIEF MODERN HISTORY OF TAIWANDuring the Chinese Communist Revolution of 1949, communist forces overpowered the Chinese government’s military forces under the leadership of General Chiang Kai-shek. Facing mass executions if captured, Chiang Kai-Shek and his army fled to Taiwan and set up his Chinese government on the island. The new Taiwanese government chose to retain the name ROC while the Chinese communists on the mainland took the formal name People’s Republic of China.

So today there are two Chinas: The PRC which is mainland China ruled by the Communist Party. This is the China that we have studied, the China referred to in news stories, and the China that poses threats to democracy.The ROC is located on the island of Taiwan, is a free and prosperous country, and is an ally of the United States.

Taipei, ROC, the capital of Taiwan. (Note the mountainous terrain in the background.)

Taiwan (ROC) has an unusual history that seems a bit surprising given the economic success she enjoys today. The people of Taiwan, beginning in 1950, lived under Chiang Kai-shek’s military government for more than 30 years, not usually the ticket to economic success, but during this time the ROC industrialized and grew economically under free market capitalism.

During that time, however, the government imprisoned or executed more than 140,000 of its own citizens who the government suspected of being communist sympathizers. These largely unjust actions

could easily have led to totalitarian government. But thankfully for it citizens, a republican form of government was ultimately established, so that now Taiwanese people enjoy personal liberty generally free from government tyranny.

Today, Taiwan (ROC) remains an independent country. It has its own representative government, makes its own political decisions, and operates a prosperous free market economy. The story of Taiwan is remarkable, but it is an unfinished story. The Communist Party of China (PRC) is determined to regain control of Taiwan. There is always tension between the two Chinas, but most Taiwanese, especially older citizens, are insistent on maintaining their independence.

ROC Taiwanese President Tsai Ing-wen

DAVID V. GOLIATHTaiwan—ROC—is David; Communist China (PRC) is Goliath.It is a goal of the PRC to reunify Taiwan as a formal part of the People’s Republic of China. The PRC regards Taiwan as a ‘wayward’ province that rightfully should be Chinese territory.Red China/Communist China/PRC could easily conquer Taiwan militarily—but that would create lots of political problems on an international scale.

Instead of using force, the government of China is utilizing an entirely different tactic to reclaim Taiwan: They are using the old “carrot and stick” trick to LURE Taiwan-to make reunification with China so attractive that Taiwanese will WANT to come back.How are they doing this—how are they tempting Taiwan? With promises of 1. Higher paying jobs 2. Bigger markets for Taiwanese products 3. Equal treatment with all other Chinese citizens

China has also initiated cultural exchange programs and positive advertising to entice young Taiwanese just to visit mainland China. It is estimated that 70% of Taiwanese have never been to the mainland.

Are these non-violent tactics working? To some extent… Already a good number of young adult Taiwanese have moved to the mainland and Some Taiwanese have invested money in Chinese business opportunities rather than in Taiwan.

Most of the older Taiwanese, however, distrust the Communist government of China, so they strongly support Taiwan independence.

So what happens if China’s attempt at peaceful reunification fails?There is always the military option. Chinese President Xi in a recent speech indirectly threatened Taiwan, but the Taiwanese people continue to resist Communist pressure for reunification.

How will this end? Will Taiwan continue to be free and independent? Only time will tell.

The Taiwanese flag

HONG KONG

Hong Kong skyline

The 3rd Asian Tiger is Hong Kong, yet another example of political and economic freedom producing a vibrant economy and high standard-of-living for citizens in a location that is very crowded, small, and without mineral wealth.

Hong Kong is located on the east coast of China (PRC) about half way between Taiwan to the northeast and Han to the southwest. See the map below.

Hong Kong was part of the British Empire for over 150 years. While still under British control, refugees trying to escape the communist revolution in China opted to relocate in Hong Kong. While these fleeing Chinese people wanted no part of Communism, they were keen to continue their economic ties with China. Over time Hong Kong began to serve as a ‘middle man’ between China and the rest of the world. This led to Hong Kong developing into a world leader in commerce and trade.

In 1997 Hong Kong was granted independence from Great Britain and became part of the People’s Republic of China (PRC) as a special ‘ADMINISTRATIVE DISTRICT’. Becoming a territory of China rather than a province has been extraordinarily beneficial for the citizens of Hong Kong. The people of Hong Kong are not surveilled by their own government, they are not given citizenship scores by government officials, and they do have the right to petition, protest, and criticize their government.

Today, Hong Kong maintains its own political and economic systems.Hong Kong utilizes a republican form of government with a representative assembly.

In 2019 Hong Kong is regarded as the ‘freest and most competitive’ economy in the world.A favorable plan of taxation, a huge number of skilled and highly educated workers, and reliance on the LAW OF SUPPLY AND DEMAND have created a very prosperous economy.

Hong Kong has the 7th largest trading/commercial economy in the world.It has one of the highest per capita incomes in the world.It has the most skyscrapers in the world—check the picture above for proof.

The population density of Hong Kong is very high, so it is crowded with throngs of people. 90% of the citizens rely on PUBLIC TRANSPORTATION rather than automobiles to avoid congestion.

Smog is an environmental problem during the winter—the smog drifts over Hong Kong because of the high concentration of manufacturing/industry in nearby Chinese cities.

Don’t miss the point: Singapore, Taiwan, and Hong Kong all feature political freedom whose economies are driven by free market capitalism in the hands of hard-working, educated people.