Historical factors have caused separation of the two sides of the Taiwan Straits for over 40years, but objective environment has opened up ways for them to interchange and interact, However, due to differences in ideologies, social systems, and living standards, repulsion and distrust still exist on both sides. Therefore, the current important thing for us to do is to minimize differences, promote greater harmony, and provide more opportunities for the governments and people on both sides to understand each other. We should discard the feeling of estrangement and alienation and cultivate mutual trust and goodwill toward each other in order to ensure a mutually beneficial relationship. From the standpoint of ideological trends int he world, this paper tries to examine the direction of social changes, the modern ways of thinking, and the surging tide of consitutional democracy. It also gives an account of Taiwan's successful experience in economic development achieved under the Principle of the People's Livelihood and makes an analysis of the factors for the failure of communist social reforms on mainland China. Using the current developmental trends in the world's political and economic systems as evidences, it points out that the "Taiwan experience" could be a revelation to mainland China in her effort for modernization. With the anticipated advent of an "Asian Era," a "global Chinese economic network" can be a dominant economic force in the world in the 21st century. Both Taiwan and mainland China will have to be involved in this network. If the vast and populous mainland, with an abundance of natural resources, should cooperate with Taiwan, which is densely populated, devoid of natural resources, but well stocked with capital, they can surely attain the objective of mutual benefit and co-prosperity. At that time, modernization in mainland China will be in sight, and unification of China will be within reach.