The island of Taiwan is located in the Western Pacific between Japan and the Philippines off the southeast coast of China, from which it is separated by the Taiwan Strait. With a total area of about 36,179 square kilometers, Taiwan is 394 kilometers long and 144 kilometers wide at its widest point.
History and Government
In 1895, through a war of aggression against China, Japan forced the Chinese government to sign the unequal Treaty and occupied Taiwan. Taiwan reverted to Chinese control after World War II. Following the Communist victory on the mainland in 1949, 2 million Nationalists came to establish a government in Taiwan. Over the next five decades, the ruling authorities gradually democratized. Throughout this period, the island prospered and became one of East Asia's economic "Tigers." In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist to the Democratic Progressive Party.
Legal System
Law in Taiwan is based on a German-based legal system. To speed up financial liberalization and globalization as well as to attract more foreign investment, the government amended the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals on September 30, 2003. In terms of market discipline, Taiwan has always striven to comply with international standards on corporate governance. On 6 February 2003, the Money Laundering Control Act was amended to more effectively prevent money-laundering activities and strengthen international cooperation on counter-terrorism. With regard to financial supervision, the Financial Supervisory Commission (FSC) under the Executive Yuan was inaugurated on 1 July 2004 to promote integrated financial supervision in Taiwan.
International Financial Services Centre
Foreign trade has been the major impetus behind Taiwan's economic development. By actively expanding foreign trade opportunities for Taiwan's businesses, the government strives to achieve its policy goal of "cultivating localization while promoting globalization for Taiwan" and to create an environment conducive to sustainable business operations. In response to globalization, increasing regional economic integration, and the formation of free trade areas, Taiwan has been actively joining various trade talks through international trade organizations like WTO, Asia-Pacific Economic Cooperation (APEC) and negotiating with other countries on the signing of free trade agreements (FTAs).
