This article analyzes whether the evolution of Taiwan's industrialstructure from the beginning of the 20th century has been relatedto her changing political status. The major findings can be summarized as follows. First, the long-term high concentration of Taiwan'sindustrial sector on light industry in the early stage of its industrialization process led to the slow structurial change for the wholeindustry. However, this phenomenon is not peculiar. Second, incontrast to the experience of many countries which started theirindustrialization process with the development of the textile industry, Taiwan began from the sugar industry. Comparing Japanesecolonial Taiwan with Japan in the same era, we find that Taiwan'ssugar industry had a comparative advantage over its textile industry. Economic forces would have caused Taiwan's sugar industry todevelop even without government support.