Taiwan has always had a relatively large population, but lacked natural resources. Early economic development therefore concentrated on the agricultural sector.

After 1950, the economy grew with a rapid but steady pace. Manufacturing and the commercial sector became dominant for the Taiwan economy. Taiwan later became the 15th largest trading nation in the world. Kaohsiung County port (for container-shipping) was the 5th largest in the World in 2003 after Hong Kong, Singapore, Pusan, and Shanghai.

In 1999, Taiwan became the largest computer component manufacturing center in the world. Taiwan's GNP is around 290 billion US dollars and an impressive 6% growth rate. Per capita income is around 13,300 US dollars per year.

Originally known for cheap, plastic toys, Taiwan manufacturers have moved quickly into computer and related component manufacturing. Taiwan's exports in 1999 were valued at over US$135 billion, just US$47 billion less than all of mainland China. The mainland is now Taiwan's largest export market, ahead of the US.