The Republic of China (Taiwan)
Republic of China 1912
• First republic in Asia
• First president: Sun Yat-sen (1866 - 1925)
ROC Constitution (1946)
• First constitutional president (1948 1975): Chiang Kai-shek (1887 - 1975)
• Defeated by CCP in 1949
• Retreated to Taiwan
• Authoritarian 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
• 2 Provinces and 18 counties
Taiwan before 1949
• Immigration from mainland China for
centuries (Fujian and Hakka)
• 1885, Qing government promoted Taiwan
from prefecture to province
• 1895, ceded to Japan
• 1945, returned to Republic of China
• ``Taiwanese” versus ``mainlanders”
– Fujian 70%, Hakka 15%, ``mainlanders” 13%
Taiwan & Islands
• Area: 13,900 square miles
• Population: 23 million
Chiang Kai-shek’s Rule
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Popular elections at the basic level
Land reform
9-year compulsory education
Economic take-off from 1960s
– Export processing zones attract foreign direct
investment
– Industrialization strengthens manufacturing
sector
Chiang’s One-China Policy
• ``Mainland was temporarily usurped by
communist bandits”
• ``Gloriously retake the mainland”
• Refused diplomatic relations with any
country that recognized PRC
• ROC 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 pro-independent
Democratic Progressive Party
• President of ROC 2000-2008
• Prisoner #2630 since 2008-11-12
Diplomatic Tug of War
• 162 countries recognize PRC (Beijing) as
the legitimate government of China
– 8 (’49) 32 (’59) 49 (’69) 113 (’79) 129 (’89)
• 29 countries recognize ROC (Taipei) as
the legitimate government of China
US Official Policy
• US government shifted diplomatic
recognition from ROC to PRC in 1979
• US congress passed Taiwan Relations Act
in 1979
• American Institute in Taiwan
• Taipei Economic and Cultural
Representative Offices in US
Economic Ties
• Trade and investment expanded rapidly
despite restrictions by ROC government
• Workaround: Hong Kong and Macau
• ``Three links”:
– mail, transportation, and trade
• Economic Cooperation Framework
Agreement (ECFA) was signed in 2010
Taiwan's Export to Mainland China (billion US$)
80
70
60
50
40
30
In 2012, Taiwan’s exports
to Mainland China was
$132 billion, and imports
from Mainland China was
$37 billion.
20
10
0
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Taiwan's Investment on Mainland China (billion US$)
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Hong Kong
Hong Kong SAR
Land & People
• 422 square miles
– Hong Kong Island
– Kowloon Peninsular
– New Territories
– Outlying islands
• 7 million residents
– 95% Chinese
Brief History
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HK Island was occupied by UK in 1841
New Territories on 99-year lease in 1898
Occupied by Japan during World War II
Shanghai enterprises fled CCP forces in
late 1940s
– industrialization of Hong Kong
• One of the four ``Asian Tigers”
Negotiations with UK
• Deng Xiaoping: “1 country, 2 systems”
• PRC Constitution of 1982: S.A.R.
• PRC & UK Joint Declaration in 1984
Handover to PRC
• 7th National People’s Congress adopted
Basic Law of HKSAR in Beijing in 1990
• Became Hong Kong Special
Administrative Region of PRC in July 1,
1997
Basic Law of Hong Kong SAR
• Stipulated in PRC-UK Joint Declaration in
1984
• Drafted by a committee with members
from both Hong Kong and mainland
• Adopted by 7th NPC in Beijing in 1990
• Came into effect on July 1, 1997
• Constitutional document for HKSAR
3 Principles in the Basic Law
• ``One Country, Two Systems”
– Capitalist system and way of life shall remain
unchanged for 50 years (B.L. A5)
• ``High Degree of Autonomy”
• ``Hong Kong People Running Hong Kong”
``One Country, Two Systems”
• Legal system (British common law) shall
be maintained, except for any law that
contravene the Basic Law and subject to
amendment by the legislature (B.L. A8)
`` High Degree of Autonomy”
• HKSAR enjoys executive, legislative, and
independent judicial power, including that
of final adjudication (B.L. A2)
``HK People Running HK”
• executive authorities and legislature shall
be composed of permanent residents of
Hong Kong (B.L. A3)
• public servants must be permanent
residents of Hong Kong, with some
exceptions
Central People’s Government
• responsible for defense and foreign affairs
relating to HKSAR (B.L. A13-14)
• authorizes HKSAR to conduct relevant
external affairs on its own (B.L. A13)
• HKSAR shall be responsible for the
maintenance of public order
• 11 PRC laws apply to HK (B.L. A18)
Rights and Freedoms
• freedom of speech, of the press, of
publication, of association, of assembly, of
procession, of demonstration, of
communication, of movement, of
conscience, of religious belief, of
marriage..
• the right and freedom to form and join
trade unions, and to strike
3 Branches of Political Structure
• Chief Executive
– C. Y. Leung
• Legislative Council
• Court of Final Appeal
S/election of CE & Legco
• Shall be specified in the light of the actual
situation in the HKSAR and in accordance
with the principle of gradual and orderly
progress (B.L. A45 & A68)
• The ultimate aim is the election of the
Chief Executive and all the members of
the Legislative Council by universal
suffrage (B.L. A45 & A68)
S/election of Chief Executive
• 800-member Election Committee
– industrial, commercial, and financial sectors
1/4
– the professions 1/4
– labor, social services, religious, & other 1/4
– Legco, HK deputies to NPC, etc. 1/4
• C. Y. Leung (2012 - 2017)
– no more than two consecutive terms
S/election of 60-member Legco
Since 1997
• Freedoms and rights substantially intact
– dissident groups
– Falun Gong
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Judicial system remains the same
Weak executive and strong civil service
Lack of political skills
Multiple political parties
Hong Kong’s Competitiveness
• Geographic location
– one of the best deep-water ports in the world
• hardworking well-educated workforce
– literacy rate 94%
``World’s Freest Economy”
• exports and imports each (>US$400b)
greater than GDP
• GDP per capita: US$50,700 (PPP)
• no VAT, sales tax, or capital gains tax
• only 3 types of income are taxed:
– profits, salaries, and property
• but
– 31% live in public housing
Influence on Mainland China
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US$400 billion direct investment each way
Hong Kong bodies of law and expertise
Hong Kong attracts talents from mainland
Hong Kong radios, TV, newspapers,
magazines, and Internet on mainland