The parties were irreconcilable, and these negotiations came to an impasse. Eventually, a compromise was agreed upon with the mediation of the British ambassador to China, Thomas Wade.

China was preoccupied with preparations for war with Yettishar (a Muslim state in Xinjiang that emerged following the Dungan uprising).

On October 31, Japan and Qing concluded a truce, under which Japan had to withdraw its troops from Taiwan, and the Chinese had to pay compensation to injured Japanese sailors and relatives of the victims. It was the first international treaty to recognize Japan's sovereignty over the Ryukyu archipelago. The inhabitants of Ryukyu were now subjects of Japan.

They had to pay approximately 18.7 tons of silver to Japan as an indemnity plus twice as much again to compensate the families of the dead sailors.

In addition to this, they had to pay 75 tons of silver for expenses incurred by the Japanese government for laying roads and erecting buildings on the island.

From that time, the Qing authorities were responsible for policing all cases of sea robbery both on the island and in Chinese waters.

Japan provided Formosa to the Chinese and had to leave the island by December 20, 1874.

One day after the departure of the Japanese expedition, the camp was reduced to ashes, the Chinese burning everything they had bought, considering it to be humiliating to use.

In 1875, Taipei became the capital of northern Taiwan. In 1886 Taiwan was singled out as a separate province of China. The defeat in the war with the Japanese forced the Qing government to cede Taiwan to Japan in 1895.

Under the terms of the Shimonoseki Peace Treaty, Taiwan came under the control of the Japanese administration. Having settled on the island, the Japanese first began to study the local tribes.

They call these tribes "takasago" (as the Japanese read "gaoshan"). The Japanese conduct scientific research and classifications and took control of the island.

Following the outbreak of World War II, some villages were converted into paramilitary camps by the Japanese.

Thus, they prepared the local population for service in the Japanese army. Two raid companies were formed from the Aborigines under the command of Japanese commanders, who took part in the battles in the Pacific Ocean, New Guinea, and the Philippines.

They also took part in raids on the American airfield at Browen. During this raid, a Taiwanese suicide squad named "Kaoru Group" was supposed to blow up American planes. The task was only partially completed.

Generally, these Takasago units were distinguished by their good training and excellent fighting qualities.

Local patriots tried to organize Taiwan, as an independent state, “the Republic of Taiwan ". However, this attempt failed. The new Qing government was defeated in the war with the Japanese and ceded Taiwan to Japan in 1895.

The intention of the Chinese to keep Taiwan for themselves by establishing the independent state " the Republic of Taiwan " was quickly suppressed by the Japanese. Taiwan, aka Formosa, was seized by the Japanese. For some time they were heroically resisted by both the Chinese and the aborigines, but modern firearms did their job. Rumour has it that the Japanese made an action movie on this event. Taiwan fit well with the Japanese concept of accretion by islands.

They tried to do everything to make the locals feel like subjects of the Empire of the Rising Sun. Some even believed in this, for example, Teruo Nakamura, one of those who had been hiding out in the jungle for many years after the war.