The management of the SARS crisis in 2003 was a test case for the quality of the political and economic institutions on both sides of the Taiwan Strait, that is, the ROC and the PRC. Both governments lacked crisis prevention mechanisms including the sense of a pounding danger that was threatening the health of millions people. This is so in particular in China, whose colossal political bureaucracy equipped with underdeveloped institutions lost the early and thus the best opportunity to overcome the SARS outbreak. By comparison, the SARS situation in Taiwan, despite press freedom and political pluralism enjoyed by the community, worsened rapidly everyday due to the administration's inexperience in crisis management and the political infighting within the government and between the political parties, which naturally led to administrative inefficiency, poor communication among key organizations, and resource misallocation. Under the authoritarian system in China, the SARS situation was put under control after a quite long time; and in both the mainland and Taiwan, the government could work effectively in fighting the SARS only when a few capable senior officers and qualified doctors were appointed replacing the poorly performed incumbents. The management of the SARS outbreak teaches a costly lesson that both governments must update their institutions and capabilities if they do not want to fail again in the future when new societal crises emerge.