7.18. The Story of Taiwan

Chiang Kai-shek, defeated by the CCP fled in 1949 to Taiwan with over US$300 million in gold reserves and crates of priceless art treasures and established the Republic of China.

After losing the Chinese Civil War to the Chinese Communist Party (CCP), Chiang Kai-shek retreated to Taiwan in 1949. He took significant resources with him, totaling over $300 million in gold and many valuable art pieces. In Taiwan, he set up a government known as the Republic of China, which claimed to be the legitimate government of all China, including the mainland.

Imagine a general retreating after a battle, bringing not only his troops but also his treasures to a new safe place where he plans to continue his leadership. This is similar to how Chiang prepared to maintain his authority and government structure in a new environment.

Taiwan had been a Japanese colony since the Chinese ceded it after the 1894-95 war with Japan.

Taiwan was ceded to Japan following the First Sino-Japanese War (1894-95). During the Japanese colonial period, which lasted until 1945, Japan invested heavily in Taiwan's infrastructure, education, and economy, making significant changes to the island's social and political systems.

Think of how a company might take over a struggling business and invest in it to make it successful. Japan did something similar by enhancing Taiwan's infrastructure, which led to economic improvements.

The GMD, under Chiang Kai-shek went on to establish a repressive government forbidding free speech and political opposition and excluding the local population from positions of power.

Under Chiang's leadership, the Kuomintang (GMD) created a government in Taiwan that suppressed dissent and prohibited freedoms such as speech and political organization. Local Taiwanese people were often excluded from political power, furthering tensions between the GMD and the local population.

This is akin to a situation where a new manager takes over a company and imposes strict rules, making it difficult for employees to express their ideas or concerns, resulting in frustration and resentment.

However, they carried out land reforms that increased agricultural productivity and modernised the economy so that by 1973 Taiwan had a GNP second only to that of Japan in Asia.

Despite its repressive policies, the GMD implemented land reforms that redistributed land and improved agricultural productivity, which helped modernize Taiwan's economy. By the early 1970s, Taiwan's Gross National Product (GNP) was the second highest in Asia, trailing only behind Japan.

Imagine a community garden where the land is reallocated to ensure everyone can grow food more efficiently. This can lead to a surprising bounty that benefits the entire community, similar to how land reforms improved Taiwan's agricultural output and overall economy.

Even more dramatic has been the transformation of Taiwan into a democracy. It began slowly after the death of Chiang in 1975 and grew in momentum when martial law was lifted in 1987 and opposition parties were legally permitted.

Taiwan's journey towards democracy started after Chiang Kai-shek's death in 1975. The real shift occurred when martial law was lifted in 1987, allowing for the establishment of opposition parties and greater political freedom, leading to the first democratic elections.

Think about a school where students were not allowed to express their opinions or start clubs due to strict rules. After some time, a new principal allowed students to voice their ideas and create clubs, leading to a vibrant school community. This mirrors Taiwan's transition to a democratic system.

Diplomatically most countries have only trade missions in Taiwan. Full diplomatic relations and embassies are not possible as Taiwan is considered to be part of China.

Due to the political stance of the People's Republic of China, many countries only maintain trade missions in Taiwan rather than establishing full diplomatic relations, as China claims Taiwan as part of its territory.

This can be likened to a friend group that excludes another friend because of their association with a different circle; they might still meet occasionally but won't formally recognize them in group activities.

The question of re-unification with the mainland remains a contentious issue but “Cross Strait” relations (that is between Taiwan and China) have been improving and Taiwanese trade and investments in the mainland are massive and travel has also become easier.

The debate over whether Taiwan should reunify with mainland China continues to be a heated issue. However, relationships between Taiwan and mainland China have seen improvements, especially in trade and investment, and travel has become more accessible.

Imagine two countries that used to be friends and decided to stop talking due to a disagreement. Over time, they begin to trade goods and visit each other, slowly rebuilding their relationship despite their earlier conflicts.

China may be willing to tolerate a semi-autonomous Taiwan as long as it gives up any move to seek independence.

China's recent approach suggests a willingness to accept Taiwan's semi-autonomous status if Taiwan refrains from declaring independence. This reflects a strategic position that could lead to a form of coexistence.

This is similar to a sibling agreement where one sibling can have their own room and privacy as long as they agree to share toys. In both scenarios, there's a compromise to maintain peace while respecting differing desires.

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