Taiwan
Republic of China (1945–present)

While Taiwan was under Japanese rule, the Republic of China was founded on mainland China on 1 January 1912 following the Xinhai Revolution of 1911. Central authority waxed and waned in response to warlordism (1915–28), Japanese invasion (1937–45), and the Chinese Civil War (1927–49), with central authority strongest during the Nanjing decade (1927–37), when most of China came under the control of the Kuomintang (KMT). During World War II, the 1943 Cairo Declaration specified that Formosa and the Pescadores be returned by Japan to the ROC; the terms were later repeated in the 1945 Potsdam Declaration that Japan agreed to carry out in its instrument of surrender. On 25 October 1945, Japan surrendered Taiwan to the ROC, and in the Treaty of San Francisco, Japan formally renounced their claims to the islands, though without specifying to whom they were surrendered. In the same year, Japan and the ROC signed a peace treaty.

While initially enthusiastic about the return of Chinese administration and the Three Principles of the People, Formosans grew increasingly dissatisfied about being excluded from higher positions, the postponement of local elections even after the enactment of a constitution on the mainland, the smuggling of valuables off the island, the expropriation of businesses into government-operated monopolies, and the hyperinflation of 1945–1949. The shooting of a civilian on 28 February 1947 triggered island-wide unrest, which was suppressed with military force in what is now called the February 28 Incident. Mainstream estimates of the number killed range from 18,000 to 30,000. Chen was later replaced by Wei Tao-ming, who made an effort to undo previous mismanagement by re-appointing a good proportion of islanders and re-privatizing businesses.

After the end of World War II, the Chinese Civil War resumed. A series of Chinese Communist offensives in 1949 led to the capture of its capital Nanjing on 23 April and the subsequent defeat of the Nationalists on the mainland. The Communists founded the People's Republic of China on 1 October. On 7 December 1949, Chiang Kai-Shek evacuated his Nationalist government to Taiwan and made Taipei the temporary capital of the ROC. Some 2 million people, mainly soldiers, members of the ruling Kuomintang and intellectual and business elites, were evacuated to Taiwan, adding to the earlier population of approximately six million. These people and their descendents became known in Taiwan as " waisheng ren " (外省人). The ROC government took to Taipei many national treasures and much of China's gold and foreign currency reserves. Most of the gold was used to pay soldiers' salaries, with some used to issue the New Taiwan dollar, part of a price stabilization program to slow inflation in Taiwan.

After losing control of mainland China in 1949, the ROC retained control of Taiwan and Penghu (Taiwan, ROC), parts of Fujian (Fujian, ROC)—specifically Kinmen, Wuqiu (now part of Kinmen) and the Matsu Islands and two major islands in the South China Sea. The ROC also briefly retained control of the entirety of Hainan, parts of Zhejiang (Chekiang)—specifically the Dachen Islands and Yijiangshan Islands —and portions of Tibet, Qinghai, Xinjiang and Yunnan. The Communists captured Hainan in 1950, captured the Dachen Islands and Yijiangshan Islands during the First Taiwan Strait Crisis in 1955 and defeated the ROC revolts in Northwest China in 1958. ROC forces entered Burma and Thailand in the 1950s and were defeated by Communists in 1961. Since losing control of mainland China, the Kuomintang continued to claim sovereignty over 'all of China', which it defined to include mainland China (including Tibet), Taiwan (including Penghu), Outer Mongolia, and other minor territories.
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