The Nationalist Government's Economic Policies Regarding Taiwan: 1945-1949

At the end of World War Ⅱ, Taiwan reverted to Chinese sovereignty. After taking over Taiwan in late 1945, the Nationalist government immediately imposed various control policies. Almost all of the private companies previously owned by the Japanese became monopolistic public companies. The Nationalist government also controlled foreign trade and regulated prices. These policies created a hyperinflation, wealth was redistributed, and Taiwan was transformed into an economy dominated by public enterprises and monopolies.