The People's Republic of China (PRC) was founded in 1949 after the Communist Party defeated
the previously nationalist Kuomintang in a civil war. The
Kuomintang retreated to Taiwan, creating two rival Chinese states - the PRC on the mainland and the Republic of China based on Taiwan.
If you ask Chinese people on the mainland, "Is Taiwan a country or a part of China?" the
y would say it is just a part of China. Meanwhile, Taiwanese would say they are another country not part of China.
Credit : http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1287798.stm
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