tHE Asia-Pacific region becomes an important center of world economy. The economy of APEC is seen as a main body of Asia-Pacific region. In order to approach for Asia-Pacific and global economy, Taiwan has no doubt to actively participate APEC as first step for regionalization and globalization. Therefore, there are three major parts emphasized in this paper. Firstly, the dilemma and challenges of APEC process will be discussed. Secondly, it will further examine Taiwan's position in APEC and what challenges Taiwan will encounter. Thirdly, it will discuss what strategy Taiwan will adopt to deal with her restrictions. Besides, on the methodological analysis, a view of polities and economics will be employed, in order to understand closely the political-economic interactions of APEC and the location of Taiwan in APEC.