Taiwan (Chinese: 臺灣 or 台灣; pinyin: Táiwān), is a state in East Asia. Originally based in mainland China, the Republic of China now governs the island of Taiwan (formerly known as Formosa), which makes up over 99% of its current territory,as well as Penghu, Kinmen, Matsu, and other minor islands. Neighboring states include the People's Republic of China to the west, Japan to the east and northeast, and the Philippines to the south. Taipei is the capital city and economic and cultural centre of the country,while New Taipei is the most populous city.