This article examines the Chinese book publishing business during the period of Japanese Colonial rule in Taiwan. First of all, A brief description of the categories involved in Chinese book publication: old-style private school textbooks, poetry, vernacular Chinese anthologies, and general histories of Taiwan. There were also three constraints on books being published at that time: constraint by "Taiwan Publishing Rules" from a political view, from a cultural view, constraint by use of languages, and by subject, constraint due to a lack of materials during wartime. Except for local publications, publications imported from mainland China shared much of the market. Some founders of the major Chinese bookstores were famous intellectuals, i.e.蔣清水、莊垂勝, et al. This article includes the challenges involved in running these bookstores at that time. Via the study of the Chinese book publication industry during the period of Japanese Colonial rule of Taiwan, we can better understand the Chinese book business and its characteristics.