Governorship Chiang appointed Chen as the Governor of
Taiwan Province in 1949 to plan the development of Taiwan as a Nationalist stronghold. After the Nationalist force retreated to Taiwan, Chen went on to hold key civilian government positions such as Vice-Executive of the
Kuomintang,
Vice President, and
Premier of the Republic of China. He was the youngest premier since promulgation of the 1947 constitution to take office. Chen's administrative style combined centralized authority with reliance on technocrats. As Premier, he promoted figures such as
Yin Chung-jung,
Yen Chia-kan,
Yang Chi-tseng and
Li Kwoh-ting, valuing professional expertise to drive Taiwan’s postwar reconstruction. In his years on Taiwan, he introduced various land and economic reforms and carried out the reconstruction of Taiwan. Chen's
37.5% Arable Rent Reduction initiative was credited with stopping the spread of communism in Taiwan. The policy capped the rent farmers paid to landlords at 37.5% of the harvest. Prior to the directive, landlords had often sought more than half of the crop as payment. Following the "37.5% Arable Rent Reduction Act" policy, Chen promptly initiated the Public Land Distribution in 1951, aiming to compulsorily acquire land from landlords. A total of 138,957 hectares were redistributed to 286,287 tenant farming households. In 1952, the Land to the Tiller policy was implemented. Between 1949 and 1960, rice yields per hectare in Taiwan increased by approximately 50%, and farmers’ net income tripled. Land reform resulted in over 80% of Taiwanese farmers becoming owner-cultivators. He advanced the national strategy of “People above All, Livehood First” alongside the dual policy of “using agriculture to nourish industry, and using industry to develop agriculture.” He was also credited with launching several construction projects. One was the
Shimen Reservoir, in
Taoyuan County, which reduced flooding and increased the rice crop production. Chen opposed the Kuomintang’s policy of launching a military counterattack against the mainland, repeatedly warning in meetings against taking reckless action. In his memoirs, he stated that while a military reconquest was impossible, “political, diplomatic, and economic counteroffensives” were still feasible. On May 19, 1949, Chen promulgated the Order of Martial Law to announce the imposition of
martial law throughout Taiwan to expel communist infiltration and to buffer defense capabilities. As Governor of Taiwan, Chen also served concurrently as commander of the
Taiwan Garrison Command and head of the High-level Intelligence Committee. He co-directed suppression campaigns against dissenters and curtailed the influence of the CC Clique by withholding budgetary support for its Bureau of Investigation. Chen utilized the White Terror as a means to enforce land, economic, and political reforms. He ordered that anyone resisting or obstructing land reform be investigated by the Taiwan Garrison Command. Under Chen's strict measures, at least 4 generals, along with numerous business executives and landlords accused of corruption, spying or opposing reforms, were executed. A notable example involved military vehicles recklessly driving through Taipei, causing accidents. Chen decreed that any soldier operating vehicles who caused fatal accidents would be shot on the spot, with the executions publicized to landlords as a deterrent.
1960 presidential succession and rift with Chiang Under the 1947 Constitution, Chiang Kai-shek was expected to step down after completing two presidential terms by 1960. As Vice President and Premier of the ROC, as well as Vice Chairman of the KMT, Chen Cheng was widely regarded as the most likely successor to the presidency. In the lead-up to the 1960 election, Chen made a high-profile visit to liberal scholar
Hu Shih, urging Chiang to honor the constitutional term limits. At the same time, tensions between Chen and Chiang escalated over the appointment of the Minister of Education: Chiang supported the reappointment of
Chang Ch'i-yun, while Chen backed
Mei Yiqi. Chen ultimately prevailed in the dispute. However, Chiang bypassed the succession question by engineering a constitutional amendment that allowed him to remain in office. Chen remained as Vice President, but the episode significantly damaged his relationship with Chiang.
Factional influence and the Tsotanhui Clique After World War II, Chen Cheng cultivated a political faction within the Kuomintang known as the
Tsotanhui Clique. This group was composed primarily of Chen’s loyalists from the
Whampoa Military Academy, Three Principles of the People Youth Corps, and
Blue Shirt Society. Formed to counter the influence of the
CC Clique led by
Chen Lifu, the Tsotanhui Clique gained strength during the late 1940s. By the early 1950s, the Tsotanhui Clique had become the dominant bloc in the Legislative Yuan, noted for its assertiveness and frequent clashes with both the CC Clique and
Chiang Ching-kuo. It reflected Chen’s technocratic and conservative outlook, emphasizing administrative competence and party discipline. Following Chen’s death in 1965, the clique continued under new leadership, including Vice Premier
Huang Shao-ku, Legislative Yuan Vice President
Ni Wenya, and KMT caucus leader
Chao Tzu-chi. ==Death==