Taiwan was originally settled by various Malayo-Polynesian peoples (todays Aboriginals), and later by migrants from south-eastern China.

In 1623 the Dutch briefly occupied parts of Taiwan. Around this time the Portuguese gave Taiwan the name by which it became known in the west: Ilhsa Formosa, Beautiful Island.

In 1683, Taiwan—for the first time—became an official part of the Chinese Empire. It was considered to be a county of Fujian Province. Increasing numbers of Chinese began to migrate to Taiwan, However, for much of this time Taiwan was considered the "wild west" and paid scant attention by Chinese authorities. It was often used as a base for Chinese rebels and pirates.

In 1895, after the Japanese army defeated the Chinese army in Korea, the Treaty of Shimonoseki ceded Taiwan to the Japanese. Taiwan was a Japanese colony for the next 50 years until the conclusion of World War II.

In 1945, Taiwan returned to Chinese rule as the Kuomintang Party, under Chiang Kai Shek, fled from Mao's Communist Party to Taiwan. They then established the “Republic of China on Taiwan” under martial law. Since that time there has been a stand-off between the Taiwanese government and Communist China about who is the rightful ruler of Taiwan.

In 1987, martial law was lifted. In 1996, Taiwan democratically elected a president for the first time. In its second presidential election in 2000, the ruling Kuomintang Party lost power for the first time in 54 years. Since then, the opposition Democratic Progressive Party has held the presidency.

Taiwan is a free wheeling democracy and continues to develop as a modern industrial power. Despite a de facto independence, Taiwan is politically isolated as China continues to consider it as rebel province and threatens war should Taiwan declare formal independence.

For a good introduction to Taiwan's complex history, read the short online book "Island in the Stream"