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Taiwan is an island in East Asia. "Taiwan" is also commonly used to refer to the territories governed by the Republic of China (ROC) and to ROC itself, which governs the island of Taiwan, Orchid Island and Green Island in the Pacific off the Taiwan coast, the Pescadores in the Taiwan Strait, and Kinmen and the Matsu Islands off the coast of mainland Fujian. Taiwan is also currently claimed by the People's Republic of China (PRC) although the PRC has never controlled Taiwan or any of the current ROC territory commonly referred to as "Taiwan".
The main island of Taiwan is located in East Asia off the coast of mainland China, southwest of the main islands of Japan but directly west of the end of Japan's Ryukyu Islands, and north-northwest of the Philippines. Today the Republic of China has a dynamic capitalist, export-driven economy with gradually decreasing state involvement in investment and foreign trade. In keeping with this trend, some large government-owned banks and industrial firms are being privatized.
Real growth in GDP has averaged about eight percent during the past three decades. The Republic of China has its own currency, the New Taiwan dollar.
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