Economic History of Taiwan - Early Chinese Administration

Early Chinese Administration

See also: Kingdom of Tungning and Taiwan under Qing Dynasty rule

After the Siege of Fort Zeelandia, Koxinga drove the Dutch out of Taiwan. Under his administration, Taiwan became an economically independent state politically ruled by his kingdom. Koxinga established land distribution systems in order to efficiently supply food for his private army.

The British Empire and Japan continued to trade with Taiwan as an independent state. The English East India Company even established a commercial treaty with the Kingdom of Tungning, which was also known as the Kingdom of Taiwan.

After defeating Koxinga's private army, the Qing government had no interest in improving the economy of Taiwan, calling it a Huawaizhidi (uncivilized land). Therefore the economic activities mostly came from the settlements of migrants. The most significant economic development during this time period was the establishment of irrigation systems and hydraulic engineering projects. The agricultural surplus caused by these improvements led to the export of rice to mainland China.

On the other hand, the commercial activities continued throughout major trading ports. Tainan, Lukang, and Banka became the three largest cities in Taiwan.

In 1858, four ports were opened in Anping, Ta-kau, Keelung, and Tamsui as a result of pressures from the British and French Empires after the Second Opium War. These trading ports exported Taiwanese tea and camphor and further boosted the economy of Taiwan.