Rescue groups from around the world joined local relief workers and the Taiwanese military in digging out survivors, clearing rubble, restoring essential services and distributing food and other aid to the more than 100,000 people made homeless by the quake.

The disaster, dubbed the "Quake of the Century" by the local media, had a profound effect on the economy of the island and the consciousness of the people, and dissatisfaction with the government's performance in reacting to it was cited by a Taiwanese sociologist as a factor in the unseating of the ruling Kuomintang party in the 2000 presidential election.

The epicenter was at 23.77° N latitude, 120.98° E longitude, 9.2 km (5.7 mi) southwest of Sun Moon Lake, near the town of Jiji (Chi-Chi), Nantou County.

[13] At the time of the quake, Taiwan had the most extensive network of sensors and monitoring stations in the world, resulting in "probably the best data set ever collected for an earthquake".

Near Dongshih, near the northern end of the fault, a nearly 7 m (23 ft) high waterfall was created by the earthquake as the surface rupture offset the channel of the Dajia River.

Eighty-seven people died in the rubble of the building, which was later found to be unsoundly built, with structural pillars and beams stuffed with plastic bottles and newspaper instead of brick and concrete.

[25] Blame for the collapse was levelled by survivors at both the construction company which built the high-rise and local government for lax enforcement of building codes and safety standards.

[27] With Taiwan struggling to recover from the after-effects of the 1997 Asian financial crisis, the economic damage of the earthquake was a great cause for concern, with estimates that the total cost would be some 10% of the entire gross domestic product of the country in 1999.

The immediate rescue efforts were still ongoing when public anger began to mount at shoddy construction that many felt was responsible for the high number of casualties.

The same day the ROC military was mobilised, with large numbers of conscripted soldiers heading to stricken regions to assist in distributing emergency supplies, clearing roads, and rescuing people trapped in the rubble.

[32] Initially Taiwan's isolated diplomatic situation caused a delay in a response from the United Nations, which abides by the "One China Policy", and so chose not to act without the approval of the Beijing government because of its geopolitical clout.

[33] On 25 September President Lee Teng-hui declared a state of emergency in the affected areas, giving sweeping powers to local authorities to ignore the usual bureaucratic and legal restrictions on measures to bring relief to people and locations most in need.

Private donations directly to the government-run disaster fund totalled NT$33.9 billion,[41] while organisations including the Presbyterian Church of Taiwan, Rotary International, Cathay Life Insurance, Dharma Drum Mountain, I-Kuan Tao, the Tzu Chi Foundation and various temple, church, and community groups all contributed to aiding survivors and funding reconstruction.

Unhappiness with the government's performance in response to the disaster was reflected in a drop in support for vice-president Lien Chan who was standing as the Kuomintang candidate for the 2000 presidential election.

[10] A fault from the earthquake was discovered in Zhushan Township, Nantou County by a professor from National Taiwan University conducting research in the area in November 2002.

[49] A permanent fault shift in Shigang District resulted in serious damage to the Shihgang Dam, as well as the necessity of patching affected roads and trails with inclines, in order to restore their usefulness.

Taipei, Dongshi, Wufeng, Puli, Jiji (Chi-Chi) and Zhongxing New Village held various events to remember the victims of the earthquake, the rescuers who aided them, and the reconstruction efforts which followed.