Yang K'ui's (1906-1985) short story,The Newspaper Boy (sinbun haitatsufu/sung-pao fu), won the second prize of the Literature Review (bungaku hyoron/wen-hsue ping-lun) contest. This was the first time that a Taiwanese writer's work was published in a mainstream Japanese journal. Although the work had been published serially in Taiwan New People's Newspaper since 1932, the paper was banned by the colonial government before the story was completely published.

This story and The Oxcart (gyusha/niu-ch'e) by Lu Ho-jo, both translated from Japanese, along with The Ill-fated (hakumei/po-ming), a Chinese-language story by Yang Hua (1900 -1936), were the first to be collected in anthologies published in China.

1937
The colonial government's ban on the Chinese language led to the closure of Chinese sections of all newspapers in Taiwan. Japan was adopting the policies of militarism and totalitarianism domestically, and already planed to invade Chinese mainland externally. In Taiwan, the colonial government started intensive Japanization programs. In addition to the Chinese language, all private book houses were also banned. All that was left was Han language poetry column in newspapers for old gentry's meaningless enjoyment. As a result, vernacular writers lost forums for publication. Only writers in Japanese were able to publish.

In September, a literary magazine Wind and Moon Journal (fugetsu ho/feng-yueh pao) was published in both literary and vernacular Chinese. However, its main focus appeared to be promoting the government theme of so called Japano-Sina friendship ( nitsi sinzen/jhi-chi chin-hsan) and Japano-Sina cooperation (nitsi teikei/jhi-chi tee-hsi).