The aim of this study is to discover the impact of the newly established tea industry on Formosa by British merchants in the second half of the nineteenth century; respective after the Treaty of Tientsin in 1858 which had opened the ports in Taiwan for foreign trade until 1895 when the Japanese began its colonization of Taiwan. Under British influence, Formosa started to produce and export famous Taiwanese Oolong tea which had set up basis for island's future prosperity.
By establishing a successful tea-industry British merchants contributed strongly to a socio-economic development of Taiwan. Formosan tea evolved from a cheap low quality tea to one of the finest tea in the world, which is popular until these days.
The popularization of Taiwanese tea together with other commercial and political interests played a significant role in Taiwanese modernization.