In 1895, military defeat forced China to cede Taiwan to
Japan, however it reverted to Chinese control after World War II.
Following the communist victory on the mainland in 1949, 2 million
Nationalists fled to Taiwan and established a government that over
five decades has gradually democratized and incorporated the native
population within its structure. Throughout this period, the island
has prospered to become one of East Asia's economic "Tigers." The
dominant political issue continues to be the relationship between
Taiwan and China and the question of eventual reunification.