Changes

===Foreign Relations===

===Foreign Relations===

The People's Republic of China replaced Taiwan at the United Nations in 1971, and Taiwan's diplomatic position has continued to erode, as many countries changed their official recognition from Taipei to Beijing. As of March 2008, Taiwan had formal diplomatic ties with 23 countries. At the same time, Taiwan has cultivated informal ties with most countries to offset its diplomatic isolation and to expand its economic relations. A number of nations have set up unofficial organizations to carry out commercial and other relations with Taiwan. Including its official overseas missions and its unofficial representative and/or trade offices, Taiwan is represented in 122 countries. Recently, Taiwan has lobbied strongly for admission into the United Nations and other international organizations, such as the World Health Organization (WHO). The P.R.C. opposes Taiwan's membership in such organizations, most of which require statehood for membership, because Beijing considers Taiwan to be a province of China, not a separate sovereign state.  

The People's Republic of China replaced Taiwan at the United Nations in 1971, and Taiwan's diplomatic position has continued to erode, as many countries changed their official recognition from Taipei to Beijing. As of March 2008, Taiwan had formal diplomatic ties with 23 countries. At the same time, Taiwan has cultivated informal ties with most countries to offset its diplomatic isolation and to expand its economic relations. A number of nations have set up unofficial organizations to carry out commercial and other relations with Taiwan. Including its official overseas missions and its unofficial representative and/or trade offices, Taiwan is represented in 122 countries. Recently, Taiwan has lobbied strongly for admission into the United Nations and other international organizations, such as the World Health Organization (WHO). The P.R.C. opposes Taiwan's membership in such organizations, most of which require statehood for membership, because Beijing considers Taiwan to be a province of China, not a separate sovereign state. The taiwanese government itself considers taiwan a province of China, but not the People's republic of china, only the Republic of China.

 

===Relations with Mainland China===

===Relations with Mainland China===

Despite 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 and permitted direct cross-Strait trade in February 2002. Taiwan authorities permitted residents of Penghu Islands starting on April 1, 2007, to begin visiting mainland China via Kinmen and Matsu. Cross-Strait trade has grown rapidly over the past 10 years. China is Taiwan's largest trading partner, and Taiwan is China's fifth largest. Estimates of Taiwan investment on the mainland, both officially approved by Taiwan authorities and investment made by Taiwan firms through third parties, start from $100 billion, making Taiwan and Hong Kong the two largest investors. This trade runs heavily in Taiwan's favor and continues to grow, providing another engine for the island's economy. The trend in cross-Strait economic interaction is one of steady growth with, so far, only temporary setbacks due to political factors such as the P.R.C.'s March 2005 passage of an Anti-Secession Law. In August 2001, President Chen accepted the recommendation of the Economic Development Advisory Council to set aside the "no haste, be patient" policy of the Lee administration and replace it with an "active opening, effective management policy." However, in January 2006, President Chen reversed the policy to "active management, effective opening." In February 2003, Taiwan and the P.R.C. agreed to allow Taiwan carriers to fly non-stop via Hong Kong or Macao to bring Taiwan residents on the mainland home for the Lunar New Year holiday. The two sides agreed to conduct Lunar New Year charter flights again in 2005, with flights operated by both Taiwan and P.R.C. carriers flying over, but not having to land in, Hong Kong or Macau. The two sides agreed on an expanded series of Lunar New Year charter flights in January-February 2006, and in June 2006 regularized these charter flights to include the other 3 major holidays--Dragon Boat festival, Mid-Autumn festival and January 1 New Year. These charter flights continue. President-elect Ma Ying-jeou has pledged to expand cross-Strait charter flights and increase the number of P.R.C. tourists visiting Taiwan early in his administration beginning May 20, 2008.  

Despite 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 and permitted direct cross-Strait trade in February 2002. Taiwan authorities permitted residents of Penghu Islands starting on April 1, 2007, to begin visiting mainland China via Kinmen and Matsu. Cross-Strait trade has grown rapidly over the past 10 years. China is Taiwan's largest trading partner, and Taiwan is China's fifth largest. Estimates of Taiwan investment on the mainland, both officially approved by Taiwan authorities and investment made by Taiwan firms through third parties, start from $100 billion, making Taiwan and Hong Kong the two largest investors. This trade runs heavily in Taiwan's favor and continues to grow, providing another engine for the island's economy. The trend in cross-Strait economic interaction is one of steady growth with, so far, only temporary setbacks due to political factors such as the P.R.C.'s March 2005 passage of an Anti-Secession Law. In August 2001, President Chen accepted the recommendation of the Economic Development Advisory Council to set aside the "no haste, be patient" policy of the Lee administration and replace it with an "active opening, effective management policy." However, in January 2006, President Chen reversed the policy to "active management, effective opening." In February 2003, Taiwan and the P.R.C. agreed to allow Taiwan carriers to fly non-stop via Hong Kong or Macao to bring Taiwan residents on the mainland home for the Lunar New Year holiday. The two sides agreed to conduct Lunar New Year charter flights again in 2005, with flights operated by both Taiwan and P.R.C. carriers flying over, but not having to land in, Hong Kong or Macau. The two sides agreed on an expanded series of Lunar New Year charter flights in January-February 2006, and in June 2006 regularized these charter flights to include the other 3 major holidays--Dragon Boat festival, Mid-Autumn festival and January 1 New Year. These charter flights continue. President-elect Ma Ying-jeou has pledged to expand cross-Strait charter flights and increase the number of P.R.C. tourists visiting Taiwan early in his administration beginning May 20, 2008.