The Japanese occupation of Taiwan, from 1895 to 1945, influenced Taiwanese society. Some elderly people speak Japanese better than they do Mandarin Chinese, which was made the official language in 1945, when Japan returned Taiwan to China. Japanese influences are also evident in food, housing, and other elements of the culture. Another major foreign influence has been that of Western countries, especially the United States, since 1950. This Westernization can be seen most vividly in the largest cities, where Western cultural tastes are changing the way people live, particularly the generations born after 1949.
Population growth is a serious problem on overcrowded Taiwan.
The population has more than doubled since 1950, and there is concern that Taiwan will not be able to maintain its high standard of living if the birthrate does not decline. Since 1950 the base of Taiwan's economy has changed largely from agriculture to industry. Most of the people now live in cities and towns and work in industry or in service occupations. Only about 12 percent still work in agriculture, and farming accounts for a very small portion of the gross national product. This economic change has caused the standard of living to improve.