1948
The high point of reintegration with China since Taiwan was ceded to Japan in 1895.

1949 - 1950
The remnants of defeated Nationalist army retreated to the island and martial law was imposed. Thousands of Taiwanese and mainlanders were killed or imprisoned for their alleged ties to the Communist. This was the beginning of the White Terror and would last for almost forty years until the martial law was lifted in 1987.

A large number of writers and poets from mainland followed Nationalist to Taiwan, forming Free China Literary Forum (szu-you chung-kuo wen-tan), which would dominate the media and literary forum. Being loyal Nationalist followers, these writers would produce works uniformly in praise of the Nationalist and anti-Communist propaganda.

Yang K'ui was arrested and sentenced to twelve-year imprisonment in a secret trial in 1949, for writing a seven-hundred-word long Peace Declaration (ho-ping hsuan-yen), in which he recommended releasing prisoners of the February 28 Incident and the peaceful resolution of the civil war between the Nationalist and the Communist. The reason for writing the Declaration was that he felt the animosity between Taiwanese (pen-ti jen) and mainlander (wai-sheng jen) must be dissipated sooner or later.

He and his wife had both been imprisoned for five months in 1947, after the February 28 Incident. During the Japanese colonial rule, he was imprisoned ten times, the total cumulative length of imprisonment was about ninety days.

1950s
United fu-k'an (lien-ho fu-k'an), literary supplement to the United Daily edited by Lin Hai-in, played a very important role in cultivating many nativist writers

1952
Liao Ching-shou was the first Taiwanese writer to complete a creative writing using the new language, Mandarin. His Revenge in Blood and Tears (en-chuou hsue-rei chi) won the third prize in long novel category of Chinese Literary Award Committee (chung-hua wen-yi chiang -chin wei-yuan-hui).

Not long after, Chung Li-ho's long novel Li-shan Farm (Li-Shan non-chang) won the second prize of the same Award (first prize absent).