In December 1871, a Ryukyuan vessel shipwrecked off the coast of Taiwan, leading to the death of 54 sailors at the hands of Paiwan aborigines. This event, known as the Mudan Incident, eventually garnered international attention. Initially, the Qing Dynasty, which had a long history of repatriating Ryukyuan shipwreck survivors, handled the situation by facilitating the return of the surviving sailors. However, the incident ignited political tensions, especially when Japanese General Sukenori Kabayama advocated for military action against Taiwan, and Japan dethroned the Ryukyuan king.

Diplomatic negotiations between Japan and Qing China intensified, culminating in a Japanese military expedition to Taiwan in 1874. Despite initial successes, the expedition faced setbacks, including guerrilla warfare from indigenous tribes and an outbreak of malaria that severely affected the troops. Qing representatives and local tribes complained of Japanese aggression but were largely ignored. The Japanese set up camps and flags, asserting their jurisdiction over the territories they encountered.

Ultimately, international pressure and the deteriorating health of the Japanese expeditionary force led to diplomatic talks between Japan and Qing China, resulting in the Peking Agreement. Japan gained recognition of Ryukyu as its vassal state and received an indemnity payment from China, eventually withdrawing troops from Taiwan in December 1874. The Mudan Incident and its aftermath marked a critical point in Sino-Japanese relations, highlighting the growing assertiveness of Japan in regional affairs and setting a precedent for future conflicts between the two nations.