In July 2016, an international tribunal at the Hague categorically rejected China’s
claims to the South China Sea, ending a 3-year legal battle with the Philippines.
This case also affected Taiwan which has its own claims to the highly disputed waters..
In a bold effort to reinforce its position, the country sent a warship to the region.
And, according to the Taiwanese government, this is just the beginning of it’s military
advances in the area.
So, just how powerful is Taiwan?
Well, in terms of its size and population, Taiwan is relatively small.
The country is home to roughly 23 million people, considerably less than its populous
neighbors, China, Japan and the Philippines.
Taiwan is also just under 14 thousand square miles, or slightly larger than the US state
of Maryland.
But despite its modest size, Taiwan has a considerable impact on the global economy.
With a GDP of more than $520 billion dollars, the country’s economy is the largest outside
the United Nations.
Traditionally, Taiwan is heavily reliant on farming.
However after rapid industrialization during the second half of the 20th century, the country
shifted its focus to manufactured exports, like electronics and machinery.
Today, Taiwan’s economy is industrial, capitalist, and extremely export-driven.
In fact, the country, alongside the high-income economies of Hong Kong, South Korea and Singapore,
are known as the “Four Asian Tigers”.
Taiwan also benefits from its unique economic partnership with China.
In 2014, bilateral trade amounted to nearly $200 billion dollars, making China Taiwan’s
largest trade partner, as well as their primary destination for direct foreign investment.
However, many have argued that Taiwan is too dependent on China.
And in fact, China’s slowing economic growth has already affected the island’s somewhat
fragile economy.
Further complicating the matter, China and Taiwan have been in conflict since the island
formed its own government in 1949.
China claims that Taiwan is part of their country, and has blocked the island’s attempts
at independence.
Taiwan, on the other hand, prohibits reunification with China without a public referendum and
legislative support.
What’s more, Taiwan lost its seat in the United Nations in 1971, when the UN chose
to recognize China instead.
Many have argued that looming tensions with China have led Taiwan to build up a robust
military.
The country boasts nearly 2 million defense personnel, and a defense budget of more than
$10 billion dollars.
Proportionally, that’s about the same as the US - which is famous for prioritizing
defense.
But despite its standing conflicts and precarious political status, Taiwan is, by most accounts,
thriving.
Despite a global economic slowdown, the island’s economy continues to diversify, and its poverty
rate remains one of the lowest in the world.
Taiwan also ranks exceptionally high in terms of press freedom, health care and quality
of life.
So, although the country is often overshadowed by its large, populous neighbors, there’s
no question that Taiwan is incredibly powerful on
its own.