In November 1897, two German missionaries were murdered by a mob in Shantung Province, China. In response, German naval forces occupied the port city of Tsingtau, and the German government used the occupation to press the Chinese government for a long-term lease of the port and the surrounding area. In March 1898, Germany and China entered into a 99-year lease under which Germany would control both sides of the entrance to Kiautschou Bay, as well as the islands within. Around this leased territory would be a small neutral zone which would, in effect, also be under German control.
On 1 February 1908, a post office was opened in Schatsykou, on the southeast coast of Kiautschou. It did not received its own canceller until 5 July 1909. Until then, mail from Schatsykou was cancelled in nearby Litsun.
This post office remained open until the early days of World War I, closing in mid-September 1914.