2011 Edition

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.

Area

35,980 sq km 32,260 sq km 3,720 sq km includes the Pescadores, Matsu, and Quemoy islands

total

35,980 sq km

water

3,720 sq km

Area - comparative

slightly smaller than Maryland and Delaware combined

Climate

tropical; marine; rainy season during southwest monsoon (June to August); cloudiness is persistent and extensive all year

Coastline

1,566.3 km

Elevation extremes

South China Sea 0 m Yu Shan 3,952 m

highest point

Yu Shan 3,952 m

lowest point

South China Sea 0 m

Environment - current issues

air pollution; water pollution from industrial emissions, raw sewage; contamination of drinking water supplies; trade in endangered species; low-level radioactive waste disposal

Environment - international agreements

none of the selected agreements because of Taiwan's international status

party to

none of the selected agreements because of Taiwan's international status

Geographic coordinates

23 30 N, 121 00 E

Geography - note

strategic location adjacent to both the Taiwan Strait and the Luzon Strait

Irrigated land

NA

Land boundaries

0 km

Land use

24% 1% 75% (2001)

arable land

24%

other

75% (2001)

permanent crops

1%

Location

Eastern Asia, islands bordering the East China Sea, Philippine Sea, South China Sea, and Taiwan Strait, north of the Philippines, off the southeastern coast of China

Map references

Southeast Asia

Maritime claims

12 nm 200 nm

exclusive economic zone

200 nm

territorial sea

12 nm

Natural hazards

earthquakes; typhoons Kueishantao Island (elev. 401 m), east of Taiwan, is its only historically active volcano, although it has not erupted in centuries

volcanism

Kueishantao Island (elev. 401 m), east of Taiwan, is its only historically active volcano, although it has not erupted in centuries

Natural resources

small deposits of coal, natural gas, limestone, marble, and asbestos

Terrain

eastern two-thirds mostly rugged mountains; flat to gently rolling plains in west

Total renewable water resources

67 cu km (2000)

Age structure

15.6% (male 1,875,359/female 1,732,007) 73.4% (male 8,538,881/female 8,406,716) 10.9% (male 1,198,591/female 1,320,225) (2011 est.)

0-14 years

15.6% (male 1,875,359/female 1,732,007)

15-64 years

73.4% (male 8,538,881/female 8,406,716)

65 years and over

10.9% (male 1,198,591/female 1,320,225) (2011 est.)

Birth rate

8.9 births/1,000 population (2011 est.)

Death rate

7 deaths/1,000 population (July 2011 est.)

Education expenditures

NA

Ethnic groups

Taiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous 2%

HIV/AIDS - adult prevalence rate

NA

HIV/AIDS - deaths

NA

HIV/AIDS - people living with HIV/AIDS

NA

Infant mortality rate

5.18 deaths/1,000 live births 5.46 deaths/1,000 live births 4.88 deaths/1,000 live births (2011 est.)

female

4.88 deaths/1,000 live births (2011 est.)

total

5.18 deaths/1,000 live births

Languages

Mandarin Chinese (official), Taiwanese (Min), Hakka dialects

Life expectancy at birth

78.32 years 75.5 years 81.36 years (2011 est.)

female

81.36 years (2011 est.)

total population

78.32 years

Literacy

age 15 and over can read and write 96.1% NA NA (2003)

definition

age 15 and over can read and write

female

NA (2003)

male

NA

total population

96.1%

Median age

37.6 years 36.9 years 38.3 years (2011 est.)

female

38.3 years (2011 est.)

male

36.9 years

total

37.6 years

Nationality

Taiwan (singular and plural) example - he or she is from Taiwan; they are from Taiwan Taiwan

adjective

Taiwan

noun

Taiwan (singular and plural)

Net migration rate

0.03 migrant(s)/1,000 population (2011 est.)

Population

23,071,779 (July 2011 est.)

Population growth rate

0.193% (2011 est.)

Religions

mixture of Buddhist and Taoist 93%, Christian 4.5%, other 2.5%

School life expectancy (primary to tertiary education)

NA

Sex ratio

1.084 male(s)/female 1.08 male(s)/female 1.02 male(s)/female 0.92 male(s)/female 1.02 male(s)/female (2011 est.)

15-64 years

1.02 male(s)/female

65 years and over

0.92 male(s)/female

at birth

1.084 male(s)/female

total population

1.02 male(s)/female (2011 est.)

under 15 years

1.08 male(s)/female

Total fertility rate

1.15 children born/woman (2011 est.)

Administrative divisions

includes main island of Taiwan plus smaller islands nearby and off coast of China's Fujian Province; Taiwan is divided into 14 counties (hsien, singular and plural), 3 municipalities (shih, singular and plural), and 5 special municipalities (chih-hsia-shih, singular and plural) Taiwan uses a variety of romanization systems; while a modified Wade-Giles system still dominates, the city of Taipei has adopted a Pinyin romanization for street and place names within its boundaries; other local authorities use different romanization systems; names for administrative divisions that follow are taken from the Taiwan Yearbook 2007 published by the Government Information Office in Taipei. Changhua, Chiayi (county), Hsinchu (county), Hualien, Kinmen, Lienchiang, Miaoli, Nantou, Penghu, Pingtung, Taitung, Taoyuan, Yilan, Yunlin Chiayi (city), Hsinchu (city), Keelung Kaohsiung, New Taipei, Taichung, Tainan, Taipei

counties

Changhua, Chiayi (county), Hsinchu (county), Hualien, Kinmen, Lienchiang, Miaoli, Nantou, Penghu, Pingtung, Taitung, Taoyuan, Yilan, Yunlin

municipalities

Chiayi (city), Hsinchu (city), Keelung

special municipalities

Kaohsiung, New Taipei, Taichung, Tainan, Taipei

Capital

Taipei 25 03 N, 121 30 E UTC+8 (13 hours ahead of Washington, DC during Standard Time)

geographic coordinates

25 03 N, 121 30 E

name

Taipei

time difference

UTC+8 (13 hours ahead of Washington, DC during Standard Time)

Constitution

adopted 25 December 1946; promulgated 1 January 1947; effective 25 December 1947; amended many times

Country name

none Taiwan none Taiwan Formosa

conventional long form

none

conventional short form

Taiwan

former

Formosa

local long form

none

local short form

Taiwan

Diplomatic representation from the US

none; commercial and cultural relations with the people on Taiwan are maintained through an unofficial instrumentality, the American Institute in Taiwan (AIT), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts William A. STANTON #7 Lane 134, Hsin Yi Road, Section 3, Taipei, Taiwan [1] [886] (02) 2162-2000 [1] [886] (07) 238-7744 Kaohsiung

director

William A. STANTON

FAX

[1] [886] (07) 238-7744

office

#7 Lane 134, Hsin Yi Road, Section 3, Taipei, Taiwan

other offices

Kaohsiung

telephone

[1] [886] (02) 2162-2000

Diplomatic representation in the US

none; commercial and cultural relations with the people in the United States are maintained through an unofficial instrumentality, the Taipei Economic and Cultural Representative Office in the United States (TECRO), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts Jason C. YUAN 4201 Wisconsin Avenue NW, Washington, DC 20016 [1] 202 895-1800 Atlanta, Boston, Chicago, Guam, Houston, Honolulu, Kansas City, Los Angeles, Miami, New York, San Francisco, Seattle

office

4201 Wisconsin Avenue NW, Washington, DC 20016

representative

Jason C. YUAN

Taipei Economic and Cultural Offices (branch offices)

Atlanta, Boston, Chicago, Guam, Houston, Honolulu, Kansas City, Los Angeles, Miami, New York, San Francisco, Seattle

telephone

[1] 202 895-1800

Executive branch

President MA Ying-jeou (since 20 May 2008); Vice President Vincent SIEW (since 20 May 2008) Premier (President of the Executive Yuan) WU Den-yih (since 10 September 2009); Vice Premier (Vice President of Executive Yuan) Sean CHEN (since 17 May 2010) Executive Yuan - ministers appointed by president on recommendation of premier president and vice president elected on the same ticket by popular vote for four-year terms (eligible for a second term); election last held on 22 March 2008 (next to be held on 14 January 2012); premier appointed by the president; vice premiers appointed by the president on the recommendation of the premier MA Ying-jeou elected president; percent of vote - MA Ying-jeou 58.45%, Frank HSIEH 41.55%

cabinet

Executive Yuan - ministers appointed by president on recommendation of premier

chief of state

President MA Ying-jeou (since 20 May 2008); Vice President Vincent SIEW (since 20 May 2008)

election results

MA Ying-jeou elected president; percent of vote - MA Ying-jeou 58.45%, Frank HSIEH 41.55%

elections

president and vice president elected on the same ticket by popular vote for four-year terms (eligible for a second term); election last held on 22 March 2008 (next to be held on 14 January 2012); premier appointed by the president; vice premiers appointed by the president on the recommendation of the premier

head of government

Premier (President of the Executive Yuan) WU Den-yih (since 10 September 2009); Vice Premier (Vice President of Executive Yuan) Sean CHEN (since 17 May 2010)

Flag description

red field with a dark blue rectangle in the upper hoist-side corner bearing a white sun with 12 triangular rays; the blue and white design of the canton (symbolizing the sun of progress) dates to 1895; it was later adopted as the flag of the Kuomintang Party; blue signifies liberty, justice, and democracy; red stands for fraternity, sacrifice, and nationalism, white represents equality, frankness, and the people's livelihood; the 12 rays of the sun are those of the months and the twelve traditional Chinese hours (each ray equals two hours)

Government type

multiparty democracy

International law organization participation

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

International organization participation

ADB, APEC, BCIE, ICC, IOC, ITUC, WTO

Judicial branch

Judicial Yuan (justices appointed by the president with consent of the Legislative Yuan)

Legal system

civil law system

Legislative branch

unicameral Legislative Yuan (113 seats - 73 district members elected by popular vote, 34 at-large members elected on basis of proportion of islandwide votes received by participating political parties, 6 elected by popular vote among aboriginal populations; members to serve four-year terms); parties must receive 5% of vote to qualify for at-large seats Legislative Yuan - last held on 12 January 2008 (next to be held on 14 January 2012) Legislative Yuan - percent of vote by party - KMT 53.5%, DPP 38.2%, NPSU 2.4%, PFP 0.3%, others 1.6%, independents 4%; seats by party - KMT 81, DPP 27, NPSU 3, PFP 1, independent 1; note - following the 2008 elections, several rounds of byelections were held to fill seats vacated as a result of corruption changes; seats by party as of December 2011 - KMT 72, DPP 32, NPSU 3, independent 2, vacant 4

election results

Legislative Yuan - percent of vote by party - KMT 53.5%, DPP 38.2%, NPSU 2.4%, PFP 0.3%, others 1.6%, independents 4%; seats by party - KMT 81, DPP 27, NPSU 3, PFP 1, independent 1; note - following the 2008 elections, several rounds of byelections were held to fill seats vacated as a result of corruption changes; seats by party as of December 2011 - KMT 72, DPP 32, NPSU 3, independent 2, vacant 4

elections

Legislative Yuan - last held on 12 January 2008 (next to be held on 14 January 2012)

National anthem

"Zhonghua Minguo guoge" (National Anthem of the Republic of China) HU Han-min, TAI Chi-t'ao, and LIAO Chung-k'ai/CHENG Mao-Yun adopted 1930; the anthem is also the song of the Kuomintang Party; it is informally known as "San Min Chu I" or "San Min Zhu Yi" (Three Principles of the People); because of political pressure from China, "Guo Qi Ge" (National Banner Song) is used at international events rather than the official anthem of Taiwan; the "National Banner Song" has gained popularity in Taiwan and is commonly used during flag raisings

lyrics/music

HU Han-min, TAI Chi-t'ao, and LIAO Chung-k'ai/CHENG Mao-Yun

name

"Zhonghua Minguo guoge" (National Anthem of the Republic of China)

National holiday

Republic Day (Anniversary of the Chinese Revolution), 10 October (1911)

National symbol(s)

white, 12-rayed sun on blue field

Political parties and leaders

Democratic Progressive Party or DPP [TSAI Ing-wen]; Kuomintang or KMT (Nationalist Party) [MA Ying-jeou]; Non-Partisan Solidarity Union or NPSU [LIN Pin-kuan]; People First Party or PFP [James SOONG]

Political pressure groups and leaders

environmental groups; independence movement; various business groups debate on Taiwan independence has become acceptable within the mainstream of domestic politics on Taiwan; public opinion polls consistently show a substantial majority of Taiwan people supports maintaining Taiwan's status quo for the foreseeable future; advocates of Taiwan independence oppose the stand that the island will eventually unify with mainland China; advocates of eventual unification predicate their goal on the democratic transformation of the mainland

Suffrage

20 years of age; universal

Agriculture - products

rice, vegetables, fruit, tea, flowers; pigs, poultry; fish

Budget

$66.85 billion $81.11 billion (2010 est.)

expenditures

$81.11 billion (2010 est.)

revenues

$66.85 billion

Budget surplus (+) or deficit (-)

-3.3% of GDP (2010 est.)

Central bank discount rate

1.625% (31 December 2010) 1.25% (February 2009)

Commercial bank prime lending rate

2.676% (31 December 2010) 2.563% (31 December 2009 est.)

Current account balance

$40.62 billion (2010 est.) $42.91 billion (2009 est.)

Debt - external

$101.7 billion (31 December 2010 est.) $81.96 billion (31 December 2009 est.)

Distribution of family income - Gini index

32.6 (2000)

Economy - overview

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics and machinery, generate about 70% of Taiwan's GDP growth, and have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to upturns and downturns in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.5%, as exports returned to the level of previous years. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration, largely because of its diplomatic status. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since President MA Ying-jeou took office in May 2008, cross-Strait economic ties have increased significantly. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan has focused much of its efforts on improving the cross-Strait economic relationship. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Taiwan and the mainland in June 2010 signed the landmark Economic Cooperation Framework Agreement (ECFA), an agreement that the Taiwan authorities hope will eventually lead to a free-trade arrangement that will increase cross-Strait economic ties by lowering tariffs on a number of goods and by reducing market access barriers for services. The Taiwan authorities have said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners and they announced that formal negotiations towards an economic cooperation agreement with Singapore would begin in 2011. Closer economic links with the mainland brings greater opportunities for the Taiwan economy, but also poses new challenges. For example, FDI in China has resulted in Chinese import substitution away from Taiwan's exports and a restriction of potential job creation in Taiwan.

Electricity - consumption

220.8 billion kWh (2009)

Electricity - exports

0 kWh (2009 est.)

Electricity - imports

0 kWh (2009 est.)

Electricity - production

229.1 billion kWh (2009)

Exchange rates

New Taiwan dollars (TWD) per US dollar - 31.642 (2010) 33.061 (2009) 31.53 (2008) 32.84 (2007) 32.534 (2006)

Exports

$273.8 billion (2010 est.) $203.4 billion (2009 est.)

Exports - commodities

electronics, flat panels, machinery; metals; textiles, plastics, chemicals; optical, photographic, measuring, and medical instruments

Exports - partners

China 28.1%, Hong Kong 13.8%, US 11.5%, Japan 6.6%, Singapore 4.4% (2010 est.)

GDP - composition by sector

1.4% 31.1% 67.5% (2010 est.)

agriculture

1.4%

industry

31.1%

services

67.5% (2010 est.)

GDP - per capita (PPP)

$35,700 (2010 est.) $32,300 (2009 est.) $33,000 (2008 est.) data are in 2010 US dollars

GDP - real growth rate

10.8% (2010 est.) -1.9% (2009 est.) 0.7% (2008 est.)

GDP (official exchange rate)

$430.6 billion (2010 est.)

GDP (purchasing power parity)

$821.8 billion (2010 est.) $741.5 billion (2009 est.) $756.1 billion (2008 est.) data are in 2010 US dollars

Household income or consumption by percentage share

6.4% 40.3% (2010)

highest 10%

40.3% (2010)

lowest 10%

6.4%

Imports

$247.3 billion (2010 est.) $172.8 billion (2009 est.)

Imports - commodities

electronics, machinery, crude petroleum, precision instruments, organic chemicals, metals

Imports - partners

Japan 20.7%, China 14.2%, US 10%, South Korea 6.4%, Saudi Arabia 4.7% (2010 est.)

Industrial production growth rate

26.9% (2010 est.)

Industries

electronics, communications and information technology products, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals

Inflation rate (consumer prices)

1% (2010 est.) -0.9% (2009 est.)

Investment (gross fixed)

21.7% of GDP (2010 est.)

Labor force

11.07 million (2010 est.)

Labor force - by occupation

5.2% 35.9% 58.8% (2010 est.)

agriculture

5.2%

industry

35.9%

services

58.8% (2010 est.)

Market value of publicly traded shares

$784.1 billion (31 December 2010) $657.3 billion (31 December 2009) $354.7 billion (31 December 2008)

Natural gas - consumption

12.1 billion cu m (2009 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

11.79 billion cu m (2009 est.)

Natural gas - production

310 million cu m (2009 est.)

Natural gas - proved reserves

6.229 billion cu m (1 January 2011 est.)

Oil - consumption

1.002 million bbl/day (2010 est.)

Oil - exports

303,000 bbl/day (2010 est.)

Oil - imports

876,300 bbl/day (2010 est.)

Oil - production

26,680 bbl/day (2010 est.)

Oil - proved reserves

2.38 million bbl (1 January 2011 est.)

Population below poverty line

1.16% (2010 est.)

Public debt

33.4% of GDP (2010 est.) 33.1% of GDP (2009 est.)

Reserves of foreign exchange and gold

$387.2 billion (31 December 2010 est.) $353 billion (31 December 2009 est.)

Stock of broad money

$1.022 trillion (31 December 2010 est.) $919.9 billion (31 December 2009 est.)

Stock of direct foreign investment - abroad

$162.9 billion (31 December 2010 est.) $145.3 billion (31 December 2009 est.)

Stock of direct foreign investment - at home

$63.38 billion (31 December 2010 est.) $60.88 billion (31 December 2009 est.)

Stock of domestic credit

$751.5 billion (31 December 2010 est.) $671 billion (31 December 2009 est.)

Stock of narrow money

$377.3 billion (31 December 2010 est.) $328.2 billion (31 December 2009 est.)

Taxes and other revenues

15.5% of GDP (2010 est.)

Unemployment rate

5.2% (2010 est.) 5.9% (2009 est.)

Broadcast media

5 free-to-air nationwide television networks operating roughly 75 TV stations; about 85% of households utilize multi-channel cable TV; national and regional radio networks with about 170 radio stations broadcasting (2008)

Internet country code

.tw

Internet hosts

6.336 million (2010)

Internet users

16.147 million (2009)

Telephone system

provides telecommunications service for every business and private need thoroughly modern; completely digitalized country code - 886; roughly 15 submarine fiber cables provide links throughout Asia, Australia, the Middle East, Europe, and the US; satellite earth stations - 2

domestic

thoroughly modern; completely digitalized

general assessment

provides telecommunications service for every business and private need

international

country code - 886; roughly 15 submarine fiber cables provide links throughout Asia, Australia, the Middle East, Europe, and the US; satellite earth stations - 2

Telephones - main lines in use

16.433 million (2010)

Telephones - mobile cellular

27.84 million (2010)

Airports

41 (2010)

Airports - with paved runways

4 (2010)

1,524 to 2,437 m

11

2,438 to 3,047 m

8

914 to 1,523 m

7

over 3,047 m

8

total

38

under 914 m

4 (2010)

Airports - with unpaved runways

1 (2010)

1,524 to 2,437 m

2

total

3

under 914 m

1 (2010)

Heliports

4 (2010)

Merchant marine

bulk carrier 28, cargo 19, chemical tanker 2, container 27, passenger/cargo 4, petroleum tanker 12, refrigerated cargo 7, roll on/roll off 2 2 (France 1, Vietnam 1) 574 (Cambodia 1, Honduras 2, Hong Kong 26, Indonesia 1, Italy 11, Kiribati 5, Liberia 88, Marshall Islands 2, Panama 337, Philippines 1, Sierra Leone 1, Singapore 79, Thailand 1, UK 11, unknown 8) (2010)

foreign-owned

2 (France 1, Vietnam 1)

registered in other countries

574 (Cambodia 1, Honduras 2, Hong Kong 26, Indonesia 1, Italy 11, Kiribati 5, Liberia 88, Marshall Islands 2, Panama 337, Philippines 1, Sierra Leone 1, Singapore 79, Thailand 1, UK 11, unknown 8) (2010)

total

101

Pipelines

gas 412 km (2010)

Ports and terminals

Chilung (Keelung), Kaohsiung, Hualian, Taichung

Railways

1,580 km 345 km 1.435-m gauge (345 km electrified) 1,085 km 1.067-m gauge (685 km electrified); 150 km 0.762-m gauge the 0.762 gauge track belongs to three entities, the Forestry Bureau, Taiwan Cement, and TaiPower (2010)

narrow gauge

1,085 km 1.067-m gauge (685 km electrified); 150 km 0.762-m gauge

total

1,580 km

Roadways

41,475 km 41,033 km (includes 720 km of expressways) 442 km (2009)

total

41,475 km

unpaved

442 km (2009)

Manpower available for military service

6,183,567 6,006,676 (2010 est.)

females age 16-49

6,006,676 (2010 est.)

males age 16-49

6,183,567

Manpower fit for military service

5,074,173 4,951,088 (2010 est.)

females age 16-49

4,951,088 (2010 est.)

males age 16-49

5,074,173

Manpower reaching militarily significant age annually

166,190 155,306 (2010 est.)

female

155,306 (2010 est.)

male

166,190

Military branches

Army, Navy (includes Marine Corps), Air Force, Coast Guard Administration, Armed Forces Reserve Command, Combined Service Forces Command, Armed Forces Police Command

Military expenditures

2.2% of GDP; note - in 2009, the Taiwanese president pledged to maintain defense spending at 3.0% or higher; projected 2.73% for 2011 (2009)

Military service age and obligation

19-35 years of age for male compulsory military service; service obligation - 2 years; women may enlist; women in Air Force service are restricted to noncombat roles; reserve obligation to age 30 (Army); the Ministry of Defense is in the process of implementing a voluntary enlistment system over the period 2010-2015, although nonvolunteers will still be required to perform alternative service or go through 4 months of military training (2010)

Disputes - international

involved in complex dispute with Brunei, China, Malaysia, the Philippines, and Vietnam over the Spratly Islands, and with China and the Philippines over Scarborough Reef; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Paracel Islands are occupied by China, but claimed by Taiwan and Vietnam; in 2003, China and Taiwan became more vocal in rejecting both Japan's claims to the uninhabited islands of the Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared exclusive economic zone in the East China Sea where all parties engage in hydrocarbon prospecting

Illicit drugs

regional transit point for heroin, methamphetamine, and precursor chemicals; transshipment point for drugs to Japan; major problem with domestic consumption of methamphetamine and heroin; rising problems with use of ketamine and club drugs