In the early 17th century, the Dutch East India Company established a commercial post at Fort Zeelandia (modern-day Anping, Tainan) on a coastal sandbar called 'Tayouan', after their ethnonym for a nearby Taiwanese aboriginal tribe, possibly Taivoan people, written by the Dutch and Portuguese variously as Taiouwang, Tayowan, Teijoan, etc. The name Formosa eventually 'replaced all others in European literature' and remained in common use among English speakers into the 20th century. The name Formosa ( 福爾摩沙) dates from 1542, when Portuguese sailors sighted an uncharted island and noted it on their maps as Ilha Formosa ('beautiful island'). Various names for the island of Taiwan remain in use, each derived from explorers or rulers during a particular historical period. See also: Chinese Taipei, Names of China, and China and the United Nations 4.3 Participation in international events and organizations.2.5 Republic of China on Taiwan (1949–present).Domestically, the major political contention is between parties favouring eventual Chinese unification and promoting a pan-Chinese identity, contrasted with those aspiring to formal international recognition and promoting a Taiwanese identity into the 21st century, both sides have moderated their positions to broaden their appeal. International organisations in which the PRC participates either refuse to grant membership to Taiwan or allow it to participate only on a non-state basis under various names. Taiwan maintains official diplomatic relations with 13 out of 193 UN member states and the Holy See, though many others maintain unofficial diplomatic ties through representative offices and institutions that function as de facto embassies and consulates. Taiwan is claimed by the PRC, which refuses diplomatic relations with countries that recognise the ROC. The ROC maintained its claim of being the sole legitimate representative of China and its territory, although this has been downplayed since its democratization in the 1990s. The ROC no longer represents China as a member of the United Nations, after UN members voted in 1971 to recognize the PRC instead. The political status of Taiwan is contentious.

It is ranked highly in terms of civil liberties, healthcare, and human development. Taiwan is a developed country, ranking 20th on GDP per capita.

Taiwan's export-oriented industrial economy is the 21st-largest in the world by nominal GDP and 19th-largest by PPP measures, with a focus on steel, machinery, electronics and chemicals manufacturing. In the late 1980s and early 1990s, the ROC transitioned from a one-party military dictatorship to a multi-party democracy with a semi-presidential system. In the early 1960s, Taiwan entered a period of rapid economic growth and industrialisation called the ' Taiwan Miracle'. Its effective jurisdiction has since been limited to Taiwan and smaller islands. The resumption of the Chinese Civil War resulted in the ROC's loss of mainland China to forces of the Chinese Communist Party (CCP) and consequent retreat to Taiwan in 1949. The Republic of China, which had overthrown the Qing in 1911, took control of Taiwan on behalf of the Allies of World War II following the surrender of Japan in 1945. The island was annexed in 1683 by the Qing dynasty of China, and ceded to the Empire of Japan in 1895.

In the 17th century, large-scale Han Chinese immigration to western Taiwan began under a Dutch colony and continued under the Kingdom of Tungning. Ancestors of Taiwanese indigenous peoples settled the island around 6,000 years ago. Taiwan has been settled for at least 25,000 years. With around 23.9 million inhabitants, Taiwan is among the most densely populated countries in the world. Other major cities include Kaohsiung, Taichung, Tainan, and Taoyuan.

The capital, Taipei, forms along with New Taipei City and Keelung the largest metropolitan area of Taiwan. The main island of Taiwan, also known as Formosa, has an area of 35,808 square kilometres (13,826 sq mi), with mountain ranges dominating the eastern two-thirds and plains in the western third, where its highly urbanised population is concentrated. The territories controlled by the ROC consist of 168 islands, with a combined area of 36,193 square kilometres (13,974 sq mi). Taiwan, officially the Republic of China ( ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the northeast, and the Philippines to the south.

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