This article analyzes the changes and characteristics of Taiwanese enterprise's investment in China, and looks out over the future development. When it comes to Taiwanese enterprise's investment in China, Taiwan cross-strait is in a sharp conflict in this regard as divided countries, but it is true that Taiwan has been developed rapidly and highly advanced compared to any other country which is currently associated with China. In other words, Taiwanese enterprise's investment in China accounted for only $0.1billion in 1998, when the investment just began, but as of late 2006, the amount accounts for $44billion. Further, the involved industries are changing from labor-intensive industries to technology-intensive high-tech industries. As to regions to be invested, Guangdong and Fujian were the main targets for investment, but now various other regions including Changjiang delta are attracting investment. The form of investment as well is developing into the industrial clustering for productivity. In addition, localization of production and sales is being actively promoted. Such changes in Taiwanese enterprise's investment in China have contributed to export and industrial advancement of Taiwan, and further development is expected as the economic mutual complement between China and Taiwan is firmly established. Future investment of Taiwanese enterprise's into China, however, will be developed under the influence of industrial hollowing out, which may result from the consistent investment of Taiwanese enterprise's into China. Even though such problems as government system and ideology, which have been raised in Taiwan, do not seem to bring huge effect, the fact that the issue of the systematic device between China and Taiwan(the three aspects, direct trade, mail exchange, and direct routes for flight and ship) still remains unsettled, and that the economic association between the two countries is still indirect will bring some negative effect on the advancement in association between them.