Since Chen Shui-bian, the Democratic Progressive Party (DPP) candidate for presidency in 2000, was inaugurated as the 10th President of Republic of China on May 20th, 2000, DPP has replaced KMT as the ruling party. On account of national identity, DPP had assumed before it came into power that overseas Taiwanese stand for chief service objects of overseas Chinese affairs,which differed from the view of KMT. Even more, during the presidential election campaigns, DPP advocated deactivating the Overseas Chinese Affairs Commission (OCAC) in its diplomatic and national defense white paper. That drove conventional overseas Chinese associations to feel disdained then. Moreover, Minister Dr. Chang Fu-Mei, a former member of the Control Yuan who heads the OCAC, delivered a proposition of Three Grades on Overseas Chinese in an interview in May before inaugurated. This proposition had annoyed Chang and prompted a growth of overseas Chinese affairs under the People's Republic of China and decline, under the Republic of China. In this article, we are not involved in mere platitudes, such as the promotion of overseas Chinese culture and education, the reinforcement of overseas Chinese economics, the construction of Chinese information network, the assistance of overseas Chinese certificates, enhancement of overseas Chinese communication and propagands, and the development of overseas Chinese correspondence education under the ruling KMT as well as DPP. Instead, we are discussing the relationship between Chang Fu-Mei and conventional overseas Chinese associations on the basis of Three Grades on Overseas Chinese; conferring on the best way for the OCAC to assume the character of second track diplomacy from the advance of becoming a WHO member country; observing institutionalized works set up by the OCAC from the appointment of commissioners and the transference of secretaries in the OCAC; reviewing the competition of overseas Chinese education between cross-strait in terms of the selection of Pinyin system (Chinese spelling system); and inspecting the counterattack of Pro-Unification and Against Independence by PRC to the establishment of the Global Alliance for Democracy and Peace (GADP).