Abstract The number of Taiwanese businessmen who invest money in Chinese market has increased recently. There are two factors which lead to this condition. Firstly, Reform and Open Policy has carried out since 1978. This reformation has helped China to open up, in other words, the cheap labor market, land, and some preferential policies were tried to accomplish. Therefore, Magnetic Effect was emerged. Secondly, in 1978, the development of economy in Taiwan has been promoted extremely positively. Moreover, service industry, industry and commerce have become the main industries. In 1980, Taiwan has become one of the Four Asian Tigers. After that, due to the increase in expanse of land and labor, the awareness of environmental protection, and the growth of new Taiwan dollar, it was harder for export oriented Taiwanese enterprises to operate. In order to make great process, some Taiwanese enterprises have moved to China, and most of them are sole - source investment, small and medium enterprises, moreover, they are export oriented. The number of Taiwanese investors in China has raised in these years, in addition, economic development of Taiwan and China has been in a mutually beneficial relationship. Company P of Taiwan was established in 1987 and its factory in China was set up in 1992. The aim of this dissertation is to figure out the way in which this company has been managed under the changeable environment. Firstly, the background of company P will be explained. Secondly, the strategies of management, factory migration and business concepts will be discussed. Finally, some plans for this company to make it better will be investigated. Key words: Reform and Open Policy, open economy, entry strategy, Magnetic Effect