KMT in Taiwan
In 1895, Taiwan, including the Pescadores, became a Japanese colony, a concession by the Qing Empire after it lost the First Sino-Japanese War. After Japan's defeat at the end of World War II in 1945, General Order No. 1 instructed Japan, who surrendered to the US, to surrender its troops in Taiwan to the forces of the Republic of China Kuomintang.
Taiwan was placed under the administrative control of the Republic of China by the United Nations Relief and Rehabilitation Administration (UNRRA), and the ROC put Taiwan under military occupation. Tensions between the local Taiwanese and mainlanders from mainland China increased in the intervening years culminating in a flashpoint on February 27, 1947 in Taipei when a dispute between a female cigarette vendor and an anti-smuggling officer triggered civil disorder and protests that would last for days. The uprising turned bloody and was shortly put down by the ROC Army in the 228 Incident.
Following the establishment of the People's Republic of China (PRC) on October 1, 1949, the commanders of the PRC People's Liberation Army believed that Kinmen and Matsu had to be taken before a final assault on Taiwan. KMT fought the Battle of Kuningtou and stopped the invasion. In 1950 Chiang took office in Taipei under the Temporary Provisions Effective During the Period of Communist Rebellion. The provision declared martial law in Taiwan and halted some democratic processes, including presidential and parliamentary elections, until the mainland could be recovered from the Communists. KMT estimated it would take 3 years to defeat the Communists. The slogan was "prepare in the first year, start fighting in the second, and conquer in the third year." However, various factors, including international pressure, are believed to have prevented the KMT from militarily engaging the Communists full-scale. A cold war with a couple of minor military conflicts was resulted in the early years. The various government bodies previously in Nanjing were re-established in Taipei as the KMT-controlled government actively claimed sovereignty over all China. The Republic of China in Taiwan retained China's seat in the United Nations until 1971 . Until the 1970s, KMT successfully pushed ahead with land reforms, developed the economy, implemented a democratic system in a lower level of the government, improved cross-Taiwan Strait relations, and created the Taiwan economic miracle. However KMT controlled the government under a one-party authoritarian state until reforms in the late 1970s through the 1990s. As a result of the 228 Incident in 1947, Taiwanese people had to endure what is called the "White Terror", a KMT-led political repression. The ROC in Taiwan was once referred to synonymously with the KMT and known simply as "Nationalist China" after its ruling party. In the 1970s, the KMT began to allow for "supplemental elections" in Taiwan to fill the seats of the aging representatives in parliament. Although opposition parties were not permitted, Tangwai (or, "outside the party") representatives were tolerated. In the 1980s, the KMT focused on transforming the government from a single-party system to a multi-party democracy one and embracing "Taiwanizing". With the founding of the Democratic Progressive Party (DPP) in 1986, the KMT started competing against the DPP in Parliamentary elections. In 1991, martial law ceased when President Lee Teng-Hui terminated the Temporary Provisions Effective During the Period of Communist Rebellion. All parties started to be allowed to compete at all levels of elections, including the presidential election. Lee Teng-hui, the ROC's first democratically elected President and the leader of the KMT during the 1990s, announced his advocacy of "special state-to-state relations" with the PRC. The PRC associated it with Taiwan independence.
The KMT faced a split in 1994 that led to the formation of the Chinese New Party, alleged to be a result of Lee's "corruptive ruling style". The New Party has, since the purging of Lee, largely reintegrated into KMT. A much more serious split in the party occurred as a result of the 2000 Presidential election. Upset at the choice of Lien Chan as the party's presidential nominee, former party Secretary-General James Soong launched an independent bid, which resulted in the expulsion of Soong and his supporters and the formation of the People's First Party (PFP). The KMT candidate placed third behind Soong in the elections. After the election, Lee's strong relationship with the opponent became apparent. In order to prevent defections to the PFP, Lien moved the party away from Lee's pro-independence policies and became more favorable toward Chinese reunification. This shift led to Lee's expulsion from the party and the formation of the Taiwan Solidarity Union.
Read more about this topic: History Of The Kuomintang