Taiwan is not recognized as a country by the United Nations or most nations, but it functions as a de facto independent state with its own government, military, economy, and democratic elections.

• Official Position of the People's Republic of China (PRC): The PRC asserts that Taiwan is an inalienable part of China under its "One China" policy and considers it a province to be reunified, potentially by force.

• Taiwan's Position: The government of Taiwan, officially the Republic of China (ROC), claims sovereignty over all of China, including the mainland, but has governed Taiwan independently since 1949. It maintains its own constitution, military, currency, and democratic institutions.

• International Recognition: Only 11 UN member states and the Holy See officially recognize Taiwan as a country. Most countries, including the United States, maintain unofficial relations through representative offices (e.g., the American Institute in Taiwan).

• De Facto Independence: Despite lacking formal recognition, Taiwan operates as a self-governing entity with full control over its territory, borders, and domestic affairs. It participates in international organizations like APEC and the Olympics under the name Chinese Taipei.

• Legal Criteria: Taiwan meets most criteria for statehood (population, territory, government, sovereignty) under the Montevideo Convention, but lacks universal diplomatic recognition.

In short, Taiwan is a self-governing, democratic country in practice, but not universally recognized as a sovereign nation due to political pressure from the PRC.