Taiwan is an island off the southeast coast of China, the seat of the Republic of China since 1949. The island groups of Taiwan and Penghu (except the municipalities of Taipei and Kaohsiung) are officially administered as Taiwan Province of the Republic of China. However, in practice, almost government power is exercised at the national and local (city/county) levels.

The island produces abundant food crops, although in recent years agricultural production has decreased due to rising costs and increased competition. There is food processing, petroleum refining, and the manufacture of electronics, armaments, chemicals, textiles, iron and steel, machinery, vehicles, consumer products, and pharmaceuticals. Most industries are privately run, but the government operates those considered essential to national defense, such as steel and electricity.

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