In the mid-17th century, the Dutch encouraged large-scale Han Chinese immigration to Taiwan, primarily from southern Fujian. These immigrants, mainly young single males, were hesitant to settle on the island, which had garnered a menacing reputation among sailors and explorers. Tensions escalated due to rising rice prices, oppressive Dutch taxes, and corrupt officials, culminating in the Guo Huaiyi rebellion of 1652. The rebellion was a direct response to these factors and was brutally suppressed by the Dutch, with 25% of the rebels being killed in a short span.^[32]

By the late 1640s, various challenges including population growth, Dutch-imposed taxes, and restrictions led to further discontent among the Chinese settlers. In 1643, a pirate named Kinwang began launching attacks on native villages, further destabilizing the region. He was eventually captured by the natives and handed over to the Dutch for execution. However, his legacy continued when a document was discovered inciting the Chinese to rebel against the Dutch. The Guo Huaiyi-led rebellion in 1652 saw a massive Chinese peasant army attacking Sakam. Despite their numbers, they were outmatched by a combination of Dutch firepower and native warriors. The aftermath witnessed a significant massacre of Chinese rebels, with thousands losing their lives.

Post-rebellion, Taiwan faced an agricultural crisis due to the loss of its rural labor force, as many of the rebels had been farmers. The subsequent harvest in 1653 was notably poor due to the labor shortage. However, the migration of more Chinese to Taiwan because of mainland unrest led to a modest agricultural recovery the following year. Relations between the Chinese and the Dutch deteriorated further, with the Dutch positioning themselves as protectors of the native lands against Chinese expansion. This period also witnessed an increase in anti-Chinese sentiment, with natives being advised to maintain distance from the Chinese settlers. Despite the significant rebellion, the Dutch made minimal military preparations, relying on the fact that many of the wealthy Chinese had remained loyal to them.