1976
Chung Li-ho's individual eight volume collection was edited by Chang Liang-tse and published by Yuan-shing Publishing Company. It was the first collective works of one individual Taiwanese author ever published.

1977
Wu Cho-liu's and Chi Deng-shen's individual collective works were published. Chung-li Incident (Chung-li hsi-chian) took place.

1977 - 1979
Many events in the 1970s had major impact on the Taiwan society, and led to the Nativist Literature Debates (hsiang-tu wen-hsueh lun-chan) in the literary circle. At the beginning of 1970s, Protect Tiao-yu Island Movement(pao-tiao yung-tong), initiated overseas, spread back to the Island. This movement created the "Returning to the mainland Motherland" fever. Some students studying abroad, such as Chen Jo-hsi, returned to Chinese Mainland. In Taiwan, the fever was returning to the Native (hui-kui hsiang-t'u), moving against the foreign influences. In literature, returning to the Native meant emphasizing indigenous cultural heritage, extending the traditional spirit of Taiwanese identity, which had existed since the New Taiwan Literature was created.

In May of 1977, Yeh Shih-tao published the Introduction to the Taiwan Nativist Literature History (T'ai-wan hsiang-t'u wen-hsueh-shi tao-lun), which cleared up the implicit meaning of Taiwan Nativist Literature (T'ai-wan hsiang-tu wen-hsueh). He was the first to proclaim Taiwan Consciousness(T'ai-wan yi-shih), and to define the Taiwan Nativist Literature as "the works that perceive the whole world from the Taiwan standpoint ". Although the publication was not the cause of the debates, it polarized the pros and cons groups, and led to a full scale war between them. The detractors attacked the Nativist literature as the literature of workers, peasants, and soldiers, and openly accused the writers of having Communist ties, while the defenders emphasized the realism literature. In the end, it became disputes about Taiwan consciousness, which was not the original points of Yeh's article. The cons represented the vested-interest group led by the KMT.. While the pros were grouped under Nativist, in fact it included those who identified themselves with the Island and those who did not. It thus planted the seeds for the future disputes about the unification versus independence issue. The Nativist literature debate created new interest in an indigenous literary heritage. After the debate, the voice of Literary Nativist became the main stream. Even the Government controlled publications were inundated by nativist related works, which displayed Taiwanese local color but with or without ideological content.