[This material is no longer current. Updated data will be posted.]
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 1946 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 eventual unification - as well as domestic political and economic reform. (Source: CIA00The World Factbook)
Security Assistance Funding: (Source: 2009 Congressional Budget Justifications for Foreign Operations)
($ in thousands)
| Account | FY 2007 | FY2007 | FY 2008 | FY 2008 | FY2009 |
| Actual | Supp | Estimate | Supp | Request | |
| NADR | 575 | -- | 635 | -- | 575 |
Direct Commercial Sales: (Source: 2007 Section 655 Report)
In FY 2007, the Department of State authorized the export of defense articles and services valued at $643,835,110.
