Hsinchu Campaign
The Japanese had hoped that their occupation of Taipei on 8 June 1895 would end the fighting in Taiwan. It did not. The Republic of Formosa tottered on for another five months of existence, as its presidency was assumed by Liu Yung-fu on 26 June in Tainan. Liu's assumption of the presidency stiffened the will of ordinary Formosans to resist the invaders. The result was a perceptible growth in guerrilla activity against the Japanese, and as the month of June wore on it became clear that all the island's main towns would have to be occupied forcibly before opposition to the Japanese invasion collapsed. From now on, the capture of Tainan became a political as well as a strategic imperative for the Japanese. During the next four months the Japanese would direct their efforts towards occupying Tainan and snuffing out the nascent Formosan Republic.
Dutch Formosa
The Tayouan "factory" (as VOC trading posts were called) was to become the second-most profitable factory in the whole of the Dutch East Indies (after the post at Hirado/Dejima), although it took 22 years for the colony to first return a profit. Benefitting from triangular trade between themselves, the Chinese and the Japanese, plus exploiting the natural resources of Formosa, the Dutch were able to turn the malarial sub-tropical bay into a lucrative asset. A cash economy was introduced (using the Spanish real, which was used by the VOC) and the period also saw the first serious attempts in the island's history to develop it economically.