After 1945, when Taiwan was returned to China, the ”Taiwanese New Literature” of the Japanese occupation period was no longer talked about and gradually forgotten, largely because of political taboo. In the 1970s, the rise of ”home-land” literature was set against Nationalist regime's cultural westernization policy and hence proposed the ”returning to home-land” as its central slogan. Under such condition, the ”Taiwanese new literature” of the Japanese occupation period was rediscovered as literary work with Chinese nationalist tendency. But, in the 1980s when Taiwanese nativist political power was on the rise and the idea of Taiwan Independence prevailed, Taiwanese literature was then seen as an evidence for the Taiwanese search for ”autonomy” on the cultural and literary planes. From this moment on, different from the 1970s, the discursive shift has been to use ”Taiwanese literature” against ”Chinese literature”. This essay traces the processes of the shifts from the 1970s to the 1980s, and analyzes the overall conditions from which ”Taiwanese new literature” was rediscovered and reinterpreted.