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There are, mainly in the United States and Japan, groups of Taiwan-Chinese who favour an independent Taiwan, which naturally would be close to Japan politically and economically. One may agree with their belief that Taiwan, now larger than many European countries, could exist and flourish as an independent country; yet few Chinese will wish to divorce themselves from the world's largest society.
After the termination of American economic aid, Taiwanese trade with Japan, the Philippines, and Korea grew in importance and with it the economic strength of Taiwan-Chinese businessmen. After 1964, Taiwan became a strong competitor of Hong Kong and Japan in some export industries, such as electronics and textiles.
Because military service is compulsory, the majority of common soldiers are Taiwanese: as career officers grow older and their sons show little interest in an army career, more Taiwan-Chinese are occupying higher army positions. Foreign policy and major political decisions still lie in the hands of mainland Chinese, but economic power, once monopolized by them, is now held by Taiwan-Chinese.
This shift gained impetus with the end of American economic aid, which had tied local businessmen to American industry and thus worked to the advantage of mainland Chinese, for these had contacts in the United States, whereas the Taiwan-Chinese had contacts only in Japan.
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