China changed its communistic economy policy to the open one during these 20 years. China¡¦s cheap labor force, plentiful natural resources and vast market have attracted lots of MNC to settle subsidiaries/manufacturing plants there. But the unique political and economical system of China and the special culture of Guan-Xi had made many MNC fail in the entrance of China market. Therefore, many MNC rely on the knowledge and competence of Taiwan subsidiaries. This research deals with the extent to which factors would affect the interactions, especially the complementary relationship, between Taiwan and China subsidiaries. Regarding the characteristics of industry in which MNC are, the following factors increase the extent of complementary relationship between Taiwan and China subsidiaries: 1.The higher speed of technology replacing in the industry; 2.The more support by China government; 3. Their affiliated industries are highly globalized. Regarding the business models of MNC, the more consistency of which their customers¡¦ need have, the higher degree of complementary relationship between Taiwan and China subsidiaries are. Regarding specific of parent companies and subsidiaries, the following factors increase the extent of complementary relationship between Taiwan and China subsidiaries: 1.Subsidiaries rely more on HQ to get core resourses; 2.The more activities which Taiwan and China subsidiaries have in common.