Ask Lemmygrad

In a very restricted sense, yes. Back then only a few areas were to be settled to have a foot in the door should another pirate king/queen or rebel army set up shop, again, on the island. And to keep western powers out who tried to use it as defensable colony next to China. You see, Macau was aonly allowed because it was a strip of land seperated by a wall. Should the protuguese piss of China the colony would be impossible to hold and burned down within hours after the incident. No such luck with colonies on Taiwan.