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The authorities in Taipei exercise control over Taiwan, Kinmen, Matsu, and the Penghus (Pescadores) and several of the smaller islands. Taiwan's two major cities, Taipei and Kaohsiung, are centrally administered municipalities. At the end of 1998, the Constitution was amended to make all counties and cities directly administered by the Executive Yuan. From 1949 until 1991, the authorities on Taiwan claimed to be the sole legitimate government of all of China, including the mainland. In keeping with that claim, when the Nationalists moved to Taiwan in 1949, they re-established the full array of central political bodies, which had existed on the mainland. While much of this structure remains in place, the authorities on Taiwan in 1991 abandoned their claim of governing mainland China, stating that they do not "dispute the fact that the P.R.C. controls mainland China."
The first National Assembly, elected on the mainland in 1947 to carry out the duties of choosing the president and amending the constitution, was re-established on Taiwan when the KMT moved. Because it was impossible to hold subsequent elections to represent constituencies on the mainland, representatives elected in 1947-48 held these seats "indefinitely." In June l990, however, the Council of Grand Justices mandated the retirement, effective December 1991, of all remaining "indefinitely" elected members of the National Assembly and other bodies.
The second National Assembly, elected in 1991, was composed of 325 members. The majority were elected directly; 100 were chosen from party slates in proportion to the popular vote. This National Assembly amended the Constitution in 1994, paving the way for the direct election of the president and vice president that was held in March 1996. The National Assembly retained the authority to amend the constitution, recall or impeach the president and the vice president, and ratify certain senior-level presidential appointments. In April 2000, the members of the National Assembly voted to permit their terms of office to expire without holding new elections. They also determined that such an election would be called in the event the National Assembly is needed to decide a presidential recall or a constitutional amendment. The president is both leader of Taiwan and commander in chief of its armed forces. The president has authority over the five administrative branches (Yuan): Executive, Legislative, Control, Judicial, and Examination. The president appoints the premier, the head of the Executive Yuan. The Executive Yuan comprises the premier and the cabinet members who are responsible for policy and administration.
The main lawmaking body, the Legislative Yuan (LY), was originally elected in the late 1940s in parallel with the National Assembly. The first LY had 773 seats and was viewed as a "rubber stamp" institution. The second LY was elected in 1992. The third LY, elected in 1995, had 157 members serving 3-year terms. The fourth LY, elected in 1998, was expanded to 225 members. The LY has greatly enhanced its standing in relation to the Executive Yuan and has established itself as an important player on the central level. Along with increasing strength and size this body is beginning to reflect the recently liberalized political system. In the 1992 and 1995 elections, the main opposition party--the Democratic Progressive Party (DPP)--challenged the KMT dominance of the Legislature. In both elections the DPP won a significant share of the LY seats, and the KMT held only half the seats in the LY. The DPP won the 2001 LY election with 88 seats, followed by the KMT with 66. The PFP has 45 seats, while the Taiwan Solidarity Union has 13 and all other parties 13.
As the National Assembly took action in 1994 to allow for the popular election of the president, the LY in 1994 passed legislation to allow for the direct election of the governor of Taiwan Province and the mayors of Taipei and Kaohsiung Municipalities. These elections were held in December 1994, with the KMT winning the governor and Kaohsiung mayor posts, and the DPP winning the Taipei mayor's position. In 1998, the KMT's Ma Ying-jeou wrestled back control of the mayorship of Taipei from the opposition DPP's most prominent figure Chen Shui-bian. In the same elections, however, the DPP's Frank Hsieh managed to defeat Kaoshiung's KMT incumbent.
In a move to streamline the administration, the position of elected governor and many other elements of the Taiwan Provincial Government were eliminated at the end of 1998.
The Control Yuan (CY) monitors the efficiency of public service and investigates instances of corruption. The 29 Control Yuan members are appointed by the president and approved by the National Assembly; they serve 6-year terms. In recent years, the Control Yuan has become more activist, and it has conducted several major investigations and impeachments.
The Judicial Yuan (JY) administers Taiwan's court system. It includes a 16-member Council of Grand Justices (COGJ) that interprets the constitution. Grand Justices are appointed by the president, with the consent of the National Assembly, to 9-year terms.
The Examination Yuan (ExY) functions as a civil service commission and includes two ministries: the Ministry of Examination, which recruits officials through competitive examination, and the Ministry of Personnel, which manages the civil service. The president appoints the Examination Yuan's head.
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President--Chen Shui-bian
Vice President--Annette Lu (Lu Hsiu-lien)
Premier--Yu Shyi-Kun
Vice Premier--Yeh Chu-Liu
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Despite the differences between Taiwan and the P.R.C., contact between the two sides of the Taiwan Strait has grown significantly over the past decade. Taiwan has continued to relax restrictions on unofficial contacts with the P.R.C., and cross-Strait interaction has mushroomed. In January 2001, Taiwan formally allowed the "three mini-links" (direct trade, travel, and postal links) from Quemoy and Matsu Islands to Fujian Province. Indirect cross-Strait trade has grown rapidly over the past 10 years. China is Taiwan's largest trading partner, and Taiwan is China's fourth-largest. Estimates of Taiwan investment on the mainland range from $100 - $150 billion, making Taiwan and Hong Kong the two largest investors. This indirect trade runs heavily in Taiwan's favor, providing another outlet for the island's economy. Beijing has expressed a mixed view of these developments. P.R.C. leaders are pleased at the development of economic ties and exchanges, which they believe helps their cause of reunification. However, the increase in contacts, combined with domestic political liberalization on Taiwan, also has resulted in more open discussion in Taiwan of the future of Taiwan, including the option of independence, to which Beijing is strongly opposed.
The trend in cross-Strait economic interaction is one of steady growth with, so far, only temporary setbacks due to political factors such as Lee Teng-hui's private visit to the United States in 1995 and his 1999 characterization of relations with the mainland as "state-to-state." Taiwan business representatives are enthusiastic about commercial opportunities in the mainland and have been leading proponents in calls to revise the previous administration's "no haste, be patient" policy regarding Taiwan mainland investment to prevent over-dependence on the P.R.C. In August 2001, President Chen accepted the recommendation of the economic advisory committee to set aside the "no haste, be patient" policy. In February 2003, Taiwan and the P.R.C. agreed to allow Taiwan carriers to fly via Hong Kong or Macao to bring Taiwan residents on the Mainland home for Chinese New Years. Progress has been particularly slow on resolving differences over establishing direct transportation links.
The development of semiofficial cross-Strait relations has been incremental. Prior to April 1993, when talks were held in Singapore between the heads of two private intermediary organizations--Taiwan's Straits Exchange Foundation (SEF) and the P.R.C.'s Association for Relations Across the Taiwan Strait (ARATS)--there had been some lower-level exchanges between the two sides of the Strait. The April 1993 SEF-ARATS talks primarily addressed technical issues relating to cross-Strait interactions. Lower-level talks continued on a fairly regular basis until they were suspended by Beijing in 1995 after President Lee's U.S. visit. Unofficial exchanges resumed in 1997 through informal meetings between personnel of the two sides' unofficial representative organizations. Direct SEF-ARATS contacts resumed in April 1998, and the SEF Chairman visited the mainland in October 1998. A planned visit by ARATS Chairman Wang Daohan to Taiwan in the fall, however, was postponed following statements made by then-President Lee Teng-hui that relations between the P.R.C. and Taiwan should be conducted as "state-to-state" or at least as "special state-to-state relations." Since his May 20, 2000 inauguration, President Chen has called for resuming the cross-Strait dialogue without any preconditions. President Chen has stated that such talks should be conducted on the basis of the "spirit of 1992," a reference to the agreement to hold the 1993 Singapore talks. The P.R.C., however, has insisted that President Chen must recognize the "one China" principle before talks can be held. In his May 20, 2004 inaugural address, President Chen recognized the PRC’s insistence on “one China” but stopped short of endorsing the concept. He called for a new “Cross-Strait Framework for Peace and Stability” and enhanced political, economic, and social exchanges between the two sides.
The United States has welcomed and encouraged the cross-Strait dialogue as a process which contributes to a reduction of tension and to an environment conducive to the eventual peaceful resolution of the outstanding differences between the two sides. The United States believes that differences between Taipei and Beijing should be resolved by the people on both sides of the Strait themselves. The United States has consistently stated that its abiding interest is that the process be peaceful.
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Type: Multi-party democracy. An opposition candidate for the first time won the presidential election on March 18, 2000 and was reelected in March 2004. The peaceful transfer of office from the Kuomintang to the Democratic Progressive Party in 2000 and the reelection of the DPP candidate in 2004 validated Taiwan's democratic political system. There are four major parties forming two alliances known as Pan-Blue and Pan-Green. The Pan-Blue includes the KMT and the People First Party(PFP). The Pan-Green includes the DPP and the Taiwan Solidarity Union (TSU). with the Pan-Blue holding a slight majority of seats in the legislature.
Constitution: December 25, 1946; last amended 2000.
Branches (Yuan): Executive, Legislative, Judicial, Control, Examination.
Major political parties: Democratic Progressive Party (DPP); Kuomintang (KMT--Nationalist Party); People First Party (PFP); Taiwan Solidarity Union (TSU)
Suffrage: Universal over 20 years of age.
Central budget proposed (FY 2003): 45.6.
Defense (2003): 16.82 % of entire budget.
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