Taiwan Island is located in the eastern open sea of the Asia continent. Its area is about 36,000 square kilometers, with Ryukyu Islands and Japan in the north and the Philippines in the south. It is in the middle of the Beautiful Islands of the west Pacific. Separated from the mainland China by the Taiwan Strait, it has been the main path connecting north and south-east Asia since the ancient times. To the mainland China, Taiwan is the doorway to the Pacific. Over the past thousand years, the interaction between Taiwan and mainland China is not only the main reason that affects Taiwan’s developments, but also the main reason those countries such as Holland, Spain, and the US endeavor to get benefits from it. Due to the fact that Taiwan is located along the traffic junction of the west Pacific, the stories that describe Taiwan been historically used as a military base can go on pages. However, if we look at the cross-Straits relations in historical terms of commercialism, the ideas of “Taiwan base and Mainland China” could be in conflict. Instead, the cross-Strait relations can be regarded as the Chinese “Dragon Totem”-The Dragon and its Fire Pearl. If China can be seen as the Dragon, Taiwan should be to “Fire Ball”. Based on this theory, the mainland China and Taiwan can construct reciprocal and complementary economic relations. Therefore, this paper tries to develop “The Dragon and its Fire Ball” theory in order to manifest the historical value of Taiwan’s status.