China has claimed sovereignty over Taiwan since the end of the Chinese civil war in 1949, when the defeated Nationalist government fled to the island as the Communists, under Mao Zedong, swept to power.
Overview
Long-standing tension with the mainland has eased since the China-friendly President Ma Ying-jeou took office in May 2008. In July 2009 the leaders of China and Taiwan exchanged direct messages for the first time in more than 60 years, albeit in their respective party functions, and not as national leaders.
And in June 2010, the two countries signed an historic trade pact that was described by some analysts as the most significant agreement in 60 years of separation.
Mr Ma's predecessor, Chen Shui-bian, had angered China with moves towards formal independence, and relations had been severely strained.
Despite the recent thaw, Taiwanese officials complain that Beijing has kept increasing the number of short-range missiles aimed at Taiwan.In the past the military threat from the mainland has been partly offset by the pivotal relationship between Taipei and Washington, which is the main weapons supplier to the island - one of the world's biggest buyers of arms. Beijing regularly expresses anger at US arms sales to Taiwan.
Diplomatic isolation
China insists that nations cannot have official relations with both China and Taiwan, with the result that Taiwan has formal diplomatic ties with only two dozen countries - Pacific, Latin American and African states in the main.
Taiwan has no seat at the United Nations, having lost it to China in 1971. Repeated attempts to regain representation at the UN have been blocked.
Despite its diplomatic isolation, Taiwan has become one of Asia's big traders. It is considered to have achieved an economic miracle, becoming one of the world's top producers of computer technology.
And past tensions notwithstanding, Taiwan and China enjoy healthy trade links. China is Taipei's number one export market.
In the early 1990s, however, Taiwan made the transition to democracy and the KMT's monopoly on power ended completely in 2000, with the election of President Chen Shui-bian of the opposition Democratic Progressive Party (DPP).
Unlike the KMT, which seeks a united, non-Communist China, Mr Chen was a passionate supporter of formal independence, straining relations with Beijing.
Although he won a second term in 2004, persistent corruption allegations surrounding the president and his family undermined Mr Chen's popularity, and contributed to the DPP's loss to a resurgent KMT in the 2008 presidential election.
Facts
* Formal name: Republic of China (ROC)
* Population: 23 million (government, Republic of China, 2011)
* Capital: Taipei
* Area: 36,188 sq km (13,972 sq miles)
* Major languages: Mandarin Chinese (official), Min Nan Chinese (Taiwanese), Hakka
* Major religions: Taoism, Buddhism, Christianity
* Life expectancy: 76,2 years (men), 82,7 years (women) (government statistics)
* Monetary unit: New Taiwan dollar (NT$)
* Main exports: Electronics, optical and precision instruments, information and communication products, textiles
* Internet domain: .tw
* International dialling code: +886
Leaders
President: Ma Ying-jeou
A lawyer by education, Mr Ma rose through the ranks of the Kuomintang to become the youngest ever cabinet minister in 1988.
As justice minister in 1993-1996 he acquired a reputation for combating corruption, and won back Taipei from the Democratic Progressive Party in the mayoral elections of 1998.
He led the Kuomintang in 2005-2007, scoring significant wins in the 2005 local elections. He stepped down from the party chairmanship in order to successfully to contest allegations of misuse of funds in 2007.
His presidential campaign focused on improving relations with mainland China and establish closer economic links.
Among the results of Mr Ma's policy of rapprochement are the 2008 resumption of direct flights, a 2009 agreement to facilitate investment in the island from the mainland, as well as a landmark trade deal signed in June 2010.
From : BBC News