Since 1987, the relations between Taipei and Beijing have developed very fast on the subject of people-to-people exchanges but stalemate at political level. Despite the general trend of detente in world politics and the adoption of a pragmatic Cross-Strait policy by the ROC, the PRC has pursued a dogmatic political position vis-a-vis Taipei, Beijing insists on the position that Taiwan is a province of the PRC and refuses to recognize the fact that China is a divided-nation. The principles of "one China policy" and "one country two systems" are the basic policy of Chinese communists toward Taiwan. To exclude Taiwan from the international community and to use armed forces against Taiwan are the major means to carry out these principles. Even in the last year just before the rise of Cross-Strait tension, all statements made by the Chinese communists stayed firmly on this position. It is evident that Beijing would use military means to threat Taiwan in order to realize's objections, when Taipei would not surrender. Although the political relations between Taipei and Beijing remain tense, both sides of the Taiwan Strait have consensus on the promotion of intensive economic and cultural exchanges. This paper will concentrate to analyze the development of cross-strait policy of Beijing and Taipei before the legislative election of last year in Taiwan. It is divided into four parts: (1)the basic framework of Cross-Strait relations, (2) the recent development of policy orientations of the PRC and the ROC. (3) the evaluation on Taipei and Beijing Cross-Strait Policies and (4) prospects for the future development of Cross-Strait relations.