Taiwan is an island which has for all practical purposes been independent since 1950, but which China regards as a rebel region that must be reunited with the mainland - by force if necessary.
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.
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
AT-A-GLANCE
Politics: Taiwan was a one-party state before it transitioned to democracy in the early 1990s
Economy: It is a major producer of computer technology; the main export market for Taiwanese goods is China
International: Taiwan has few formal diplomatic ties; relations with China have improved since President Ma Ying-jeou took office, but tensions remain
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.
For decades, the island was an authoritarian one-party state ruled by the Nationalist Party (Kuomintang or KMT), which under Chiang Kai-shek controlled much of China before the Communists' rise to power in 1949.
Taoism followers see in the Lunar New Year in Taipei
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.
Ma Ying-jeou has cultivated an incorruptible image
Nationalist Party (Kuomintang) candidate Ma Ying-jeou beat the Democratic Progressive Party's Frank Hsieh in the March 2008 presidential election and was sworn in on 20 May, ending eight years of Democratic Progressive Party rule.
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.
The media environment in Taiwan is among the freest in Asia, and extremely competitive.
Terrestrial TV networks compete with multichannel operators
There are hundreds of newspapers, all privately-owned and reflecting a wide range of views. Laws which prohibit the promotion of independence from China or communism are not generally enforced.
Taiwan's major terrestrial TV networks tend to be politically partisan. The take-up of multichannel cable TV is very high. The government hopes to phase out terrestrial analogue TV by 2012.
There are more than 170 radio stations, many of them with specific music formats. Phone-in programmes are particularly popular.
The government has taken steps to end government, military and political party ownership of the broadcast media.
There were more than 16 million internet users by March 2011 (InternetWorldStats). A digital convergence plan aims to integrate telecoms, the internet and broadcasting by 2014.
CBS-Radio Taiwan International - national broadcaster; also beams services to mainland China and the rest of the world in various languages and Chinese dialects
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