Historically, both the Taiwanese people and the members of the Communist Party of China (CPC) have suffered persecution by the Nationalist (KMT) government. Logically speaking, both the Taiwanese people and the CPC should have viewed the KMT government as a common enemy or have experienced common grievance. How did this situation evolve into the present antipathy towards China existing in Taiwan? And how did it evolve into the deep apprehension in the Taiwanese people about the current links between the KMT and the CPC?An analysis of the Taiwanese people’s “unification phobia” must begin with an understanding of the origins of their “anti-China” feelings. To grasp the source of these feelings, it is necessary to gain a sense of their pain over hundreds of years of colonial rule, their postcolonial psychology and the psychology of decolonization.This study disregards normative considerations, and approaches these issues from a descriptive standpoint. Using participant observation methodology, it first gives a brief description and discussion of the Taiwanese people’s experiences under colonial rule, and particularly personal experiences of the last two colonial episodes. Secondly, adopting analyses and arguments of some contemporary colonial and post-colonial scholars, this study presents an interpretation of the psychology of de-colonization in Taiwan, and an analysis of the difficulties this psychology faces in constructing its subject.