On December 8, 1949, the government of the Republic of China moved its capital from Beijing to the city of Taipei, on the island of Taiwan. This signaled the victory of Mao Zedong’s forces in the Chinese Civil War, following the establishment of the People’s Republic of China two months earlier.The competing governments of the People’s Republic of China (PRC) and the Republic of China (ROC) form the basis of the so-called “Two Chinas” issue. The PRC is a communist country with a command economy. The ROC, often just called “Taiwan,” is a democratic state with a capitalist economy. The Two Chinas issue is called the “Taiwan issue” in the PRC and the “Mainland issue” in Taiwan.
Term Part of Speech Definition Encyclopedic Entry capital Noun
city where a region's government is located.
Encyclopedic Entry: capital capitalism Noun
economic system where the free exchange of goods and services is controlled by individuals and groups, not the state.
civil war Noun
conflict between groups in the same country or nation.
command economy Noun
system where production, investment, prices and income are determined by the government.
person or group of people who support communism, a type of economy where all property, including land, factories and companies, is held by the government.
having to do with a government led by its citizens, who vote for policies and/or representatives.
to form or officially organize.
system or order of a nation, state, or other political unit.
set of actions or rules.
to identify or acknowledge.
to communicate using signs.
power or independence within a region.