The successful experience of confidence-building measures in Europe not only has strengthened the mutual confidence in this area but applies to other areas as well. Cross-strait confidence-building measures regained attention after Ma Ying-jeou won the presidential election. Both sides of the Taiwan Strait assert that they will return to the table of negotiation on the basis of Consensus of 1992. Obviously, both sides of the Taiwan Strait are looking forward to restarting negotiation. The fact is, however, that “mutual trust” or “confidence”, the essential foundation of building up these measures, does not exist. In this context, it is necessary for Taiwan to strengthen its forces, especially all-out defense for future conflict with China while the mutual trust between the both sides of the Taiwan Strait has not been established. This article will focus on the meaning, scope and elements of all-out defense, compare the key elements of all-out defense with those of confidence-building measures, and then analyze their contradictory situation.