Taiwanese people are the citizens and nationals of the Republic of China (ROC) and those who reside in an overseas diaspora from the entire Taiwan Area. The term also refers to natives or inhabitants of the island of Taiwan and its associated islands who may speak Sinitic languages (Mandarin, Hokkien, Hakka) or the indigenous Taiwanese languages as a mother tongue but share a common culture and national identity. After the retreat of the Republic of China government to Taiwan in 1949, the actual-controlled territories of the government were limited to the main island of Taiwan and Penghu, whose administration were transferred from Japan in 1945, along with a few outlying islands in Fuchien Province which include Kinmen and Matsu Islands.
Taiwanese people as a demonym may broadly refer to the indigenous peoples of Kinmen and Matsu as they share the same national identity with people of Taiwan. However, the islanders of Kinmen and the Matsu may not consider the "Taiwanese" label to be accurate as these two islands are legally parts of Fuchien and not Taiwan. They maintain distinctive cultural identities from that of the Taiwanese, and prefer to be called "Kinmenese" and "Matsunese", respectively.