In late 1990s, the China central government brought up the third “Western Grand Development” policy historically in order to keep up with the tide of globalization in the world. This policy emphasized “equally leading by government; market and enterprise.” As a result, the government thinks the policy will address the poverty of western area in China. To successfully attract the capital, technology, advanced manpower and management to solve the economic plight in western provinces, the China government integrated the development experiences in the area from the past and create a new plan and envision for future. Sayling Wen(溫世仁),the ex-vice president of Invectec corporation, which is one of the Taiwan technology businesses founded in 1975, took the lead to do with this policy and decided to build an “internet town” to change the impoverishment in Yellow Sheep River, Gansu province, which is believed one of the hardest rural areas to develop in China. The “Yellow Sheep River experience” is an important case to know about the content and the connection of the Chinese local governance policy with foreign business. The “Yellow Sheep River experience” is an important case to know about the content and the connection of the Chinese local governance policy with foreign business.