History: Old China

In 1949, after major combat ended in the Chinese Civil War, two states calling themselves "China" emerged:
The People's Republic of China (PRC), established in 1949, commonly known as China, has control over mainland China and the largely self-governing territories of Hong Kong (since 1997) and Macau (since 1999).
The Republic of China (ROC) established in 1912 in mainland China, now commonly known as Taiwan, has control over the islands of Taiwan, Penghu, Kinmen, Matsu, the Pratas island group, and a few other outlying islands.
In the 1950s, change to economic policies in Taiwan transformed the island into a technology-oriented industrialized developed economy after a period of high growth rates and rapid industrialization. In mainland China, in the 1970s, reforms known as the Four Modernizations improved agriculture, industry, technology and defense, raising living standards and making the PRC one of the great powers. By 2011 challenges included the growing divide between rich and poor, environmental degradation, and rampant corruption.