This article is divided into four parts besides introductory and concluding parts. The first part gives an historical look-back of Taiwan's development strategy from the late Ming regime, to the Manchurian Qing dynasty and to the Japanese rule. The second part examines globalization theories. After a brief review of the impact of globalization on the state's development strategy, I will look into theories on the “virtual state”, the “community state”, and propose a development model of “open service-state”. The third part deals with the practical aspect. A major point of this part is that Taiwan's future will be cross-influenced by globalization and the development of Mainland China. The discussion will give a depth analysis of the influences. The last part proposes measures to cope with the impact and influences discussed in the previous parts and maintains that Taiwan should establish itself as an “open service-state” for its future development strategy. I also analyze at the ending why globalization and integration across the Strait can help facilitate the proposed strategy.