1. The Republic of China (Taiwan)

2. Republic of China 1912 First republic in Asia
First president: Sun Yat-sen ( )

3. ROC Constitution (1946)
First constitutional president ( ): Chiang Kai-shek ( )
Defeated by CCP in 1949
Retreated to Taiwan
Authoritarian rule for a quarter century

4. ROC Government President (4-year term after 1996) The Five ``Yuan”:
Executive Yuan
Legislative Yuan
Judicial Yuan
Examination Yuan
Control Yuan
2 Provinces and 18 counties

5. Taiwan before 1949
Immigration from mainland China for centuries (Fujian and Hakka)
1885, Qing government promoted Taiwan from prefecture to province
1895, ceded to Japan
1945, returned to Republic of China
``Taiwanese” versus ``mainlanders”
Fujian 70%, Hakka 15%, ``mainlanders” 13%

6. Taiwan & Islands
Area: 13,900 square miles
Population: 23 million

7. Chiang Kai-shek’s Rule
Popular elections at the basic level
Land reform
9-year compulsory education
Economic take-off from 1960s
Export processing zones attract foreign direct investment
Industrialization strengthens manufacturing sector

8. Chiang’s One-China Policy
``Mainland was temporarily usurped by communist bandits”
``Gloriously retake the mainland”
Refused diplomatic relations with any country that recognized PRC
ROC was a permanent member of UN Security Council until 1971

9. Lee Teng-hui ( )
Succeeded Chiang Kai-shek’s son as president of ROC and chairman of GMD in 1988
Became the first popularly elected president of ROC in 1996
Helped Democratic Progressive Party gain power in 2000

10. Chen Shui-bian ( )
Leader of the pro-independent Democratic Progressive Party
President of ROC
Prisoner #2630 since

12. Diplomatic Tug of War
162 countries recognize PRC (Beijing) as the legitimate government of China
8 (’49) 32 (’59) 49 (’69) 113 (’79) 129 (’89)
29 countries recognize ROC (Taipei) as the legitimate government of China

13. US Official Policy
US government shifted diplomatic recognition from ROC to PRC in 1979
US congress passed Taiwan Relations Act in 1979
American Institute in Taiwan
Taipei Economic and Cultural Representative Offices in US

14. Economic Ties
Trade and investment expanded rapidly despite restrictions by ROC government
Workaround: Hong Kong and Macau
``Three links”:
mail, transportation, and trade
Economic Cooperation Framework Agreement (ECFA) was signed in 2010

15. In 2012, Taiwan’s exports to Mainland China was $132 billion, and imports from Mainland China was $37 billion.

17. Hong Kong
Hong Kong SAR

18. Land & People 422 square miles 7 million residents Hong Kong Island
Kowloon Peninsular
New Territories
Outlying islands
7 million residents
95% Chinese

19. Brief History HK Island was occupied by UK in 1841
New Territories on 99-year lease in 1898
Occupied by Japan during World War II
Shanghai enterprises fled CCP forces in late 1940s
industrialization of Hong Kong
One of the four ``Asian Tigers”

20. Negotiations with UK Deng Xiaoping: “1 country, 2 systems”
PRC Constitution of 1982: S.A.R.
PRC & UK Joint Declaration in 1984

21. Handover to PRC
7th National People’s Congress adopted Basic Law of HKSAR in Beijing in 1990
Became Hong Kong Special Administrative Region of PRC in July 1,

22. Basic Law of Hong Kong SAR
Stipulated in PRC-UK Joint Declaration in 1984
Drafted by a committee with members from both Hong Kong and mainland
Adopted by 7th NPC in Beijing in 1990
Came into effect on July 1, 1997
Constitutional document for HKSAR

23. 3 Principles in the Basic Law
``One Country, Two Systems”
Capitalist system and way of life shall remain unchanged for 50 years (B.L. A5)
``High Degree of Autonomy”
``Hong Kong People Running Hong Kong”

24. ``One Country, Two Systems”
Legal system (British common law) shall be maintained, except for any law that contravene the Basic Law and subject to amendment by the legislature (B.L. A8)

25. `` High Degree of Autonomy”
HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)

26. ``HK People Running HK”
executive authorities and legislature shall be composed of permanent residents of Hong Kong (B.L. A3)
public servants must be permanent residents of Hong Kong, with some exceptions

27. Central People’s Government
responsible for defense and foreign affairs relating to HKSAR (B.L. A13-14)
authorizes HKSAR to conduct relevant external affairs on its own (B.L. A13)
HKSAR shall be responsible for the maintenance of public order
11 PRC laws apply to HK (B.L. A18)

28. Rights and Freedoms
freedom of speech, of the press, of publication, of association, of assembly, of procession, of demonstration, of communication, of movement, of conscience, of religious belief, of marriage..
the right and freedom to form and join trade unions, and to strike

29. 3 Branches of Political Structure
Chief Executive
C. Y. Leung
Legislative Council
Court of Final Appeal

30. S/election of CE & Legco
Shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress (B.L. A45 & A68)
The ultimate aim is the election of the Chief Executive and all the members of the Legislative Council by universal suffrage (B.L. A45 & A68)

31. S/election of Chief Executive
800-member Election Committee
industrial, commercial, and financial sectors 1/4
the professions 1/4
labor, social services, religious, & other 1/4
Legco, HK deputies to NPC, etc. 1/4
C. Y. Leung ( )
no more than two consecutive terms

32. S/election of 60-member Legco

33. Since 1997 Freedoms and rights substantially intact
dissident groups
Falun Gong
Judicial system remains the same
Weak executive and strong civil service
Lack of political skills
Multiple political parties

34. Hong Kong’s Competitiveness
Geographic location
one of the best deep-water ports in the world
hardworking well-educated workforce
literacy rate 94%

35. ``World’s Freest Economy”
exports and imports each (~ US$ half trillion) greater than GDP
GDP per capita: US$56,700 (PPP 2015)
no VAT, sales, capital gains tax, or tariffs
only 3 types of income are taxed:
profits, salaries, and property
But, nearly half live in public
or subsidized housing

36. Influence on Mainland China
US$400 billion direct investment each way
Hong Kong bodies of law and expertise
Hong Kong attracts talents from mainland
Hong Kong radios, TV, newspapers, magazines, and Internet on mainland