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Taiwan, Portuguese Formosa, officially Republic of China, island nation (1995 est. pop. 21,501,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan Strait. Together with many nearby islets, including the Pescadores and the island groups of Quemoy and Matsu, it forms the seat of the Republic of China. The provisional capital is Taipei; Nanjing, on mainland China, is regarded as the official capital of the republic.Land and People

The heavily forested hills and mountains of central and E Taiwan reach their summit at Yu Shan (13,113 ft/3,997 m high); there are about 70 peaks exceeding 10,000 ft (3,048 m). This mountainous area produces some minerals, chiefly gold, silver, copper, and coal, but its main resources are forest products, including valuable hardwoods and natural camphor. Petroleum and natural gas have also been found. The broad coastal plain in the west supports most of the island's population and is the chief agricultural zone. Typhoons are common. Taiwan has a semitropical climate and rainfall ranging from moderate to heavy. In addition to Taipei, other major cities include Kaohsiung, Tainan, Taichung, and Chilung.

The overwhelming majority of the people are Chinese; they generally speak the Mandarin, Amoy, or Hakka dialects. There are also Malayan aborigines living in the mountainous interior. Numerous religions are practiced on Taiwan, including Taoism, Buddhism, Confucianism, shamanism, and Christianity.

Economy
The island produces abundant food crops, although in recent years agricultural production has decreased due to rising costs and increased competition. Rice is the chief crop, followed by wheat, sugarcane, sweet potatoes, vegetables, fruits, and tea. The island has a sizable fishing fleet. Industry, once concerned mainly with rice and sugar milling, has diversified to include a variety of light and heavy manufactures, increased high-technology businesses, and a growing service sector. Manufacturing accounts for almost 40% of Taiwan's gross domestic product, while service industries contribute 60%.

Textile and food processing industries have been supplemented by the production of chemicals, steel, electrical appliances, petrochemicals, machinery, ships, cement, computers and electronics, pharmaceuticals, and communication systems. Most industries are privately run, but the government operates those considered essential to national defense, such as steel and electricity. Railroad and bus lines are also government operated. Taiwan trades chiefly with the United States, Japan, Europe, and China (through Hong Kong). Major exports are computers, electronics, and electrical products, machinery, clothing, textiles, and communications equipment; imports include nonelectrical and electrical machinery, petroleum, iron and steel, precision instruments, and transportation equipment.