Dadaocheng was originally a small village near Mengjia, but quickly became an important port due to the production and export of tea after the opening of Tamsui port in 1860 (Year 10 of the Xianfeng regime). Many foreign firms set up facilities there to produce and market tea, including Tait & Co., Boyd & Co., Elles & Co., Brown & Co., and Dodd & Co. Members of the local gentry, such as the Lin Family of Banqiao and the famous comprador Li Chun-Sheng, also entered the tea industry in Dadaocheng.

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