Though there are more sites accessible from Taiwan than mainland China, there is still some government censorship that happens there. Even if your favorite sites aren't blocked, you probably won't be surprised to find out that your ISP (internet service provider) can monitor your traffic, and provide this information to the government. They can even slow down your internet connection by "throttling", or limiting bandwidth to certain websites. This is why a proxy in Taiwan, or a VPN in Taiwan is needed.
With proxy or VPN connection in Taiwan, you'll be able to unblock banned sites. It may be your favorite streaming site that was recently blocked, or it might be something your friends told you about. There's really no rules to the game when it comes to what can/can't be blocked.
Not only will you be able to unblock sites, but you'll also be able to browse privately. This means that your real IP address, your Taiwan IP, will be hidden. Proxies and VPNs are different, so read about them, and you can find what is best for you.
Proxy in Taiwan
Proxies are best for the general internet surfer. Proxies only hide your browsing activity. That means when you surf websites, the proxy will 'mask' your IP address, and give you a random American or UK IP to surf the internet. This can unblock websites and streaming video sites like YouTube. The security isn't as good as a VPN, but it works well enough for most people. This is the less expensive option, at $4.5 USD per month (132 TWD/28 RMB). The price advertised is $6 USD, but there's a 25% discount for participating in the FREE TRIAL. The service is called SecuriTales. It works in Mainland China too, so you should have no problems signing up and using the proxy service in Taiwan.
VPN in Taiwan
The advantage of a VPN in Taiwan is that it will give you better security, and make your internet surfing more private. This is going to be better for someone who wants to be completely invisible online. This is also good for someone who wants to do gaming or run other programs with a foreign IP address. Joining American/UK gaming communities is possible when you change your IP address with a VPN.
The other advantage of a VPN instead of a proxy is that you will be able to access Hulu, Netflix, Pandora, Spotify, and other FREE Western websites for music, TV, and movies. Hulu has a free version for everyone that has 5 of the newest episodes of hundreds of Western TV shows available for free, as long as you have an American IP address. A VPN can get you access to this.
HideMyAss is going to be your best choice. It's the cheapest ($6.52 USD/192 TWD/41 RMB) out of most VPN services, and it works in Taiwan in 2012 (blocked in Mainland China). There's also a 30 day money back guarantee so you can try it for a month. You can also get Canadian, Australian, Japanese, and British IP addresses to access websites from those countries. You can try their FREE proxy also.
If for some reason HMA gets blocked or has problems in the future, 12VPN is also very good. They have a very inexpensive US IP address plan for about the same price as HMA, and there's a link especially for Chinese users if the main site gets blocked. Users in the mainland can use this link too.