 It also ceded the Liaodong Peninsula (then known to the Western press as "Liaotung", modern day Dalian in the southern part of Liaoning province), and the islands of Formosa (Taiwan) and Penghu (also known as the Pescadores) to Japan.China also paid Japan a war indemnity of 200 million Kuping taels, payable over seven years, and the signing of a commercial treaty similar to ones previously signed by China with various western powers in the aftermath of the First and Second Opium Wars.This commercial treaty confirmed the opening of various ports and rivers to Japanese trade.