The rise of the Eastern District as the business district of Taipei only occurred in the last decade. The development of Taipei during the
Qing dynasty was limited to the area of Taipei Prefecture (bordered by Zhonghua Rd., Zhongshan S. Rd., Aiguo W. Rd. and Zhongxiao W. Rd.). During
Japanese rule, the development of a downtown was only extended eastward to the Horikawa Drainage Channel (present day
Xinsheng Road). The situation changed in the early 1940s when the
Kuomintang retreated to Taiwan with 2 million people. After that, because many colleges and universities were located in Taipei City and its suburbs, people from central or southern Taiwan came to Taipei to study or work. These factors lead to a sharp increase in population, causing overpopulation in the Western District. Furthermore, the
Tamsui River hindered the expansion of Taipei City to develop in a westerly direction. These factors resulted in the development of Eastern District. When jurisdiction of Taipei City changed to the central government in 1967, in order to allow mass development of the city, the city government launched the first four-year public construction project and constructed the main thoroughfares to the suburbs. Zhongxiao E. Rd. was the main thoroughfare leading to the Eastern District. The construction of Zhongxiao E. Rd. Sections 3 and onward led to the rise of the Eastern District developments. These factors led to the Eastern District overtaking the Western District as the new business center of Taipei. The development of the
Xinyi Planned District and the opening of the
MRT Wenshan Line and
MRT Nangang Line rapidly boosted the development of the Eastern District.