en.wikipedia.org/wiki/Cinema_of_Taiwan

New Wave Cinema, 1982–1990

By the early 1980s, the popularity of home video made film-watching a widespread activity for the Taiwanese. However, the Taiwanese film industry was under serious challenges, such as the entry of Hong Kong films, well known for their entertainment quality, into the Taiwanese market. In order to compete with Hong Kong films, the CMPC began an initiative to support several fresh, young directors. In 1982, the film In Our Time (1982), which featured four young talented directors (Edward Yang, Te-Chen Tao, I-Chen Ko, and Yi Chang), began what would be known as the rejuvenation of Taiwanese cinema: the New Wave.

In contrast to the melodrama or kung-fu action films of the earlier decades, New Wave films are known for their realistic, down-to-earth, and sympathetic portrayals of Taiwanese life. These films sought to portray genuine stories of people living either in urban or rural Taiwan, and are often compared stylistically to the films of the Italian neorealism movement. This emphasis on realism was further enhanced by innovative narrative techniques. For example, the conventional narrative structure which builds the drama to a climax was abandoned. Rather, the story progressed at the pace as it would in real life.

Due to its honest portrayal of life, New Wave films examined many of the important issues facing Taiwan society at this time, such as urbanization, the struggle against poverty, and conflicts with political authority. For instance, Hou Hsiao-Hsien's A City of Sadness portrays the tensions and the conflicts between the local Taiwanese and the newly arrived Chinese Nationalist government after the end of the Japanese occupation. Edward Yang's Taipei Story (1985) and A Confucian Confusion (1994) talk about the confusion of traditional values and modern materialism among young urbanites in the 1980s and 1990s. The New Wave Cinema films are, therefore, a fascinating chronicle of Taiwan's socio-economic and political transformation in modern times. Chen Kunhou's 1983 film Growing Up provides a nuanced perspective on the experience of a very young boy, from an ordinary family, getting into progressively more trouble.

Second New Wave, 1990–2010

The New Wave gradually gave way to what could be informally called the Second New Wave, which are slightly less serious and more amenable to the populace, although just as committed to portraying the Taiwanese perspective.

For example, Tsai Ming-liang's Vive L'Amour, which won the Golden Lion at the 1994 Venice Film Festival, portrays the isolation, despair, and love of young adults living in the upscale apartments of Taipei. Stan Lai's The Peach Blossom Land (1992) is a tragi-comedy involving two groups of actors rehearsing different plays on the same stage; the masterful juxtaposition and the depth of the play's political and psychological meanings helped it win recognition at festivals in Tokyo and Berlin.

Ang Lee is perhaps the most well-known of the Second New Wave director. His early films Pushing Hands (1991), The Wedding Banquet (1993), and Eat Drink Man Woman (1994) focus on the generational and cultural conflicts confronting many modern families. His Crouching Tiger, Hidden Dragon (2000) revived the wuxia genre successfully. Although not in the tradition of New Wave or Second New Wave, it is a commercial success which placed Asian films firmly in the international domain. The recent films Eternal Summer (2006), Prince of Tears (2009) and Winds of September (2009) have pushed the boundaries of Taiwanese film-making and broken the island's long-standing taboos about the depiction of controversial subject matter.

Taiwanese cinema is now facing difficult times competing with Hollywood blockbusters. Box office for local films is dwindling to less than 20 films annually and many Taiwanese viewers prefer watching Hong Kong or Hollywood productions, making the country's film industry dominated by foreign repertoire.[citation needed] The once successful Taiwan's film industry went into decline in 1994 and collapsed in 1997 because of spiraling levels of piracy.[9] There have been a few bright spots though, as in the high box office takings of Cape No. 7 (2008), which had become so popular in Taiwan that on November 1, 2008, became her highest grossing domestic film, second in the country's cinematic history to Titanic (1997). Another recent popular local film is the gangster flick Monga (2010).