Between 1895 and 1905, the Japanese capital ad a limited existence and accumulation in Taiwan though politically this island had been already under Japan's colonization. The reasons for this mismatch between political rule and economic role could be accounted by the fact that Taiwan's economy was still orientated twoards the mainland China. Additional factors such as insufficient bussiness knacks and relying its commerce too much on the colonial government contributed further to its being merely a participant in, rather than the leader of, the overall economic activities in this colony.