The colony was short-lived due to the loss of its strategic importance and unwillingness by Spanish authorities in Manila to commit more resources to its defense.

The Dutch colonisation of Formosa was part of the unsuccessful campaign to seize the possessions of the Spanish Habsburgs in Asia, including the Philippines.

The Dutch began to attack a string of often undermanned coastal fortresses that comprised the Habsburg's Portuguese African and Asian possessions.

[5] Pursuing their quest for alternative routes to Asia for trade, the first Dutch privateer squadron to reach the Philippines on 14 December 1600 was led by pirate Olivier van Noort.

[citation needed] In the context of this competition for trade, the Dutch established a colony at Tayouan, present-day Anping, in the south of Formosa.

[citation needed] Landing at Cape Santiago in the north-east of Formosa but finding it unsuitable for defensive purposes, the Spanish continued westwards along the coast until they arrived at Keelung.

Sir; I have duly received your communication of 26 August, and in response I have the honor to point out to you that as becomes a good Christian who recalls the oath he has made before his king, I cannot and will not surrender the forts demanded by your Excellency, as I and my garrison have determined to defend them.

I am accustomed to find myself before great armies, and I have engaged in numerous battles in Flanders as well as other countries, and so I beg of you not to take the trouble of writing me further letters of like tenor.

[2] A combination of Spaniards, Latin Americans, Formosan natives, and Kapampangan from the Philippines attempted to hold off the larger Dutch force.

After six days of battle, the small force surrendered the fort and was returned to Manila defeated, giving up their flags and what little artillery that had remained with them.