
Taiwan is located in the boundary between the Phillipine Sea and the Eurasian plates. There is an approximated convergence rate of 80 mm/yr to the SE. What is really especial about this island is the presence of two subduction zones: One, where the South China Sea subducts beneath Eurasia, and another one, where Eurasia subducts beneath the South China Sea, forming both zones approximately a right angle.
You can see a great introduction (including the previous explanation) to the geology of Taiwan in the dedicated website of the California Institute of Technology:
http://www.tectonics.caltech.edu/taiwan/regional.htm
Sources:
- http://earthquake.usgs.gov/eqcenter/recenteqsww/Quakes/us2009jabu.php
- http://www.tectonics.caltech.edu/taiwan/regional.htm
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