In view of the expansion of domestic demand in Taiwan’s labour market, foreign workers have become a principal labour resource in recent years. In the process of increasing imports of foreign workers, competition in employment and conflicts in the labour market of Taiwan have been exacerbating, especially because of the gradual import categories. This study attempts to consider the reduction of restrictions in certain category of foreign welfare workers (including foreign nurses and maids) in response to the demand in the labour market. In addition, it examines the phenomena of employment substitution, the impact of competition and that on class formation in Taiwan generated by the large import of foreign labour. This study also offers suggestions for the consideration in formulating the foreign labour policy in the future.