Abstract The economic growth of Taiwan was guided by small and medium enterprises; Especially Taiwan fastener industry acts an important role for Taiwan small and medium enterprises. As an old saying goes ¡§the young soldier sets up the great merit. ¡§ This is best way to describe Taiwan fastener industry. Taiwan fastener industry is playing an important part of National Development, but even government rulers ignore this. Unless you are part of Taiwan fastener industry, you can not understand that this industry is such respectable. It has been more 60 years since Taiwan launched into its name of fastener supply center. Mostly Taiwan fastener industry is small and medium enterprises. However these enterprises could not get much help from government or each other. They all fight alone. Many companies cannot survive when they meet difficulties and bottlenecks. Even companies want to help each other, integration are a big problem to them. This research is tried to discuss how Taiwan fastener industry to face China¡¦s Lower price competitive stratagem does. Author will all around discuss, analyzes and compare this topic¡§The strategic alliance will be applied between some companies of the fastener industry¡¨ to give to Taiwan fastener industry an all around competitive stratagem. Postgraduate student are working on this research not only to help running my own company but also as a Reference for Taiwan fastener industry.