This chapter describes many of the social, political, and cultural impacts of the strong American presence in Taiwan. Not only were Chinese and Americans not treated as equals, but along with the GIs were thousands of dependents who together enjoyed the trappings of an occupying army or a colonial power, including diplomatic immunity. The MAAG and numerous U.S. government agencies multiplied on Taiwan in a nearly neo-imperialistic fashion. The black market, segregation, and gaping socioeconomic differences seen in the living conditions of Americans versus native people were only a few of the issues causing friction between America and Taiwan. Housing Americans and their families overseas cost the U.S. a large sum of money and harmed its world image, birthing a sense of anti-foreignism in the Chinese. Nevertheless, the Chinese were not about to totally bend their backs to placate the Americans or allow Taiwan to be totally dominated by the United States