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Background In 1895, military defeat forced China to cede Taiwan to Japan. Taiwan 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 using the 1947 constitution drawn up for all of China. Over the next five decades, the ruling authorities gradually democratized and incorporated the local population within the governing structure. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist to the Democratic Progressive Party. Throughout this period, the island prospered and became one of East Asia's economic "Tigers." The dominant political issues continue to be the relationship between Taiwan and China - specifically the question of Taiwan's eventual status - as well as domestic political and economic reform. Population 23,024,956 (July 2010 est.) Government type includes main island of Taiwan plus smaller islands nearby and off coast of China's Fujian Province; Taiwan is divided into 18 counties (hsien, singular and plural), 5 municipalities (shih, singular and plural), and 2 special municipalities (chih-hsia-shih, singular and plural) Administrative divisions multiparty democracy Independence Republic Day (Anniversary of the Chinese Revolution), 10 October (1911) International organization participation red field with a dark blue rectangle in the upper hoist-side corner bearing a white sun with 12 triangular rays Economy - overview Market value of publicly traded shares electronics, communications and information technology products, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals Agriculture - products -2% (2009 est.) Industries 238.3 billion kWh (2008) Industrial production growth rate 229.8 billion kWh (2008) Electricity - production 0 kWh (2009 est.) Internet country code 15.143 million (2008) WebCam