Changes

The United States position on Taiwan is reflected in the Three Communiqués and the Taiwan Relations Act. The U.S. insists on the peaceful resolution of cross-Strait differences and encourages dialogue to help advance such an outcome. The U.S. does not support Taiwan independence. President Bush stated on December 9, 2003 that the United States is opposed to any attempt by either side to unilaterally alter the status quo in the Taiwan Strait. While the United States welcomes recent exchanges that enhance channels of communication between leaders in Beijing and Taipei, the United States urges Beijing and Taipei to further advance cross-Strait cooperation and dialogue, including direct discussions between the authorities in Beijing and elected leaders in Taipei.  

The United States position on Taiwan is reflected in the Three Communiqués and the Taiwan Relations Act. The U.S. insists on the peaceful resolution of cross-Strait differences and encourages dialogue to help advance such an outcome. The U.S. does not support Taiwan independence. President Bush stated on December 9, 2003 that the United States is opposed to any attempt by either side to unilaterally alter the status quo in the Taiwan Strait. While the United States welcomes recent exchanges that enhance channels of communication between leaders in Beijing and Taipei, the United States urges Beijing and Taipei to further advance cross-Strait cooperation and dialogue, including direct discussions between the authorities in Beijing and elected leaders in Taipei.  

==Defense==

==Military==

In proportion to its population, Taiwan still maintains a large military establishment. Defense expenditures accounted for 2.69 percent of GDP in 2007, and the 2008 central budget proposal increased defense expenditures to 3 percent of GDP. The military's primary mission is the defense of Taiwan against China, which is seen as the predominant threat and which has not renounced the use of force against Taiwan. Taiwan's armed forces were reduced as part of a reform initiative from 1997 to 2001, going from about 450,000 to 385,000, with further reductions since then bringing the total force level down to just under 300,000. Registered reservists reportedly totaled 3,870,000 in 1997. Conscription remains universal for qualified males between the ages of 18 and 30. In 2007 the length of conscription service was dropped from 16 to 14 months, with a view toward eventually creating an all-volunteer force. For qualified applicants, alternative service is available in police and fire departments and public clinics, as well as through teaching in some rural schools. Applicants with advanced degrees may qualify for National Defense Service, consisting of reserve officer training followed by four years of work in a government or academic research institution.  

In proportion to its population, Taiwan still maintains a large military establishment. Defense expenditures accounted for 2.69 percent of GDP in 2007, and the 2008 central budget proposal increased defense expenditures to 3 percent of GDP. The military's primary mission is the defense of Taiwan against China, which is seen as the predominant threat and which has not renounced the use of force against Taiwan. Taiwan's armed forces were reduced as part of a reform initiative from 1997 to 2001, going from about 450,000 to 385,000, with further reductions since then bringing the total force level down to just under 300,000. Registered reservists reportedly totaled 3,870,000 in 1997. Conscription remains universal for qualified males between the ages of 18 and 30. In 2007 the length of conscription service was dropped from 16 to 14 months, with a view toward eventually creating an all-volunteer force. For qualified applicants, alternative service is available in police and fire departments and public clinics, as well as through teaching in some rural schools. Applicants with advanced degrees may qualify for National Defense Service, consisting of reserve officer training followed by four years of work in a government or academic research institution.  

Taiwan's armed forces are equipped with weapons obtained primarily from the United States. In recent years, however, Taiwan also has procured some weapons from other Western nations and has stressed military "self-reliance," which has resulted in the growth of indigenous military production in certain fields. In 2007 Taiwan's legislature approved funding for certain defensive weapons systems the U.S. agreed to sell Taiwan in 2001 and earlier. These included the Patriot Advanced Capability (PAC-2 upgrade) missile defense system, P-3C maritime patrol aircraft, and a preliminary study of diesel-electric submarines. These systems would give Taiwan key capabilities in missile defense and anti-submarine warfare to remedy vulnerabilities in countering the China's accelerated military modernization. Taiwan adheres to the principles of the nuclear Non-Proliferation Treaty and has stated that it does not intend to produce nuclear weapons.  

Taiwan's armed forces are equipped with weapons obtained primarily from the United States. In recent years, however, Taiwan also has procured some weapons from other Western nations and has stressed military "self-reliance," which has resulted in the growth of indigenous military production in certain fields. In 2007 Taiwan's legislature approved funding for certain defensive weapons systems the U.S. agreed to sell Taiwan in 2001 and earlier. These included the Patriot Advanced Capability (PAC-2 upgrade) missile defense system, P-3C maritime patrol aircraft, and a preliminary study of diesel-electric submarines. These systems would give Taiwan key capabilities in missile defense and anti-submarine warfare to remedy vulnerabilities in countering the China's accelerated military modernization. Taiwan adheres to the principles of the nuclear [[Non-Proliferation Treaty]] and has stated that it does not intend to produce nuclear weapons.

==Economy==

==Economy==