Editing History of Taiwan (section)

===Piracy===
The Europeans worked with and also fought against Chinese pirates. The pirate Li Dan mediated between Ming Chinese forces and the Dutch at Penghu, leading to the Dutch relocating to Taiwan. At this time it became common for Chinese pirates in the Taiwan strait to sell protection guarantees ([[racketeering]]). In one case fishermen paid 10 percent of their catch to the Li Dan's son for a document guaranteeing their safety. On discovering this, the VOC also entered the protection business; this was one of the first taxes levied on the colony. In July 1626, the Council of Formosa ordered all Chinese individuals living or trading in Taiwan to obtain a license to "distinguish the pirates from the traders and workers". This residence permit eventually became a head tax and major source of income for the Dutch.{{sfn|Andrade|2008b}}

[[Zheng Zhilong]] supplanted Li Dan as the region's most influential pirate in 1625. Like Li Dan before him, he worked with the Dutch, even at times pillaging under the Dutch flag. At his peak, he commandeered a fleet of tens of thousands of men, according to Fujianese officials. Recognizing his large fleet of superior European-style ships, the Chinese asked the Dutch for help against Zheng. Company officials were told that if they refused their help, their main Chinese trading partner, Xu Xinsu, would no longer be permitted to trade with the company but would instead "be destroyed along with his entire family." The Dutch agreed, but acted too late, and Zheng sacked the city of Xiamen. Now considering Zheng too powerful to fight against, in 1628 Chinese authorities awarded him with an official title and imperial rank to appease him. Zheng became the "Patrolling Admiral" responsible for clearing the coast of pirates, and eliminated his competitors.{{sfn|Andrade|2008b}} In the summer of 1633, a Dutch fleet and the pirate Liu Xiang carried out a successful [[Battle of Liaoluo Bay#Dutch surprise attack|sneak attack]], destroying Zheng's fleet.{{sfn|Andrade|2008b}} On 22 October 1633, Zheng forces lured the Dutch fleet and their pirate allies into an ambush and [[Battle of Liaoluo Bay#Chinese counterattack|defeated them]].{{sfn|Wong|2017|p=50}}{{sfn|Onnekink|2019|p=79}} The Dutch reconciled with Zheng and he arranged for more Chinese trade in Taiwan. In 1637, Liu was defeated by Zheng.{{sfn|Andrade|2008b}}