Since the beginning of the last decade, Taiwan screw companies began to relocated factories in mainland China, and the technology in screw industry also gradually shifted to mainland. In recent years, China’s screw enterprises have gradually grown and they have become strong competitors with Taiwan, especially in the aspect of price competition. Under this situation, the Taiwan’s local screw industry suffered from price competition and the threats of the international steel prices and the supply of competitors. The oversupply of international market also directly affected the boom of Taiwan’s local industrial. This study explores the followings: 1.The growth and development ofmainland’s industrial supply chain under the economic development and trade in recent years. 2. Kaohsiung Gangshan local screw industrial chain in Taiwan. 3. Under such a special cooperation and competition situation across the Taiwan straits, how the Kaohsiung screw industry to develop and break through the tight encirclement.