Background: In 1895, military defeat forced China to cede Taiwan to Japan, however it reverted to Chinese control after World War II. Following the communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government that over five decades has gradually democratized and incorporated the native population within its structure. Throughout this period, the island has prospered to become one of East Asia's economic "Tigers." The dominant political issue continues to be the relationship between Taiwan and China and the question of eventual reunification.