Taiwan, a territory of the Republic of China, is an island in East Asia in the Western Pacific Ocean. It is surrounded by the East China Sea, Philippine Sea, and the Taiwan Strait. Proximate countries include mainland China, the islands of Japan, and the Philippines. The geography of Taiwan is rugged mountains in the east. The government system is a multiparty democracy; the chief of state is the president, and the head of government is the premier. Taiwan has a free market economy in which the prices of goods and services are determined in a free price system, and there is little government involvement. Taiwan is a member of the Asia-Pacific Economic Cooperation (APEC).
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