By flashback expositions, this paper discusses the reason why the growth of cinemas in Taiwan was booming at the time of early post-war, while Taiwan did not have the capability to produce films.The main reason can be summarized by the phenomenon that Taiwan's film industry did not have the capability of film production under Japanese colonial rule, but Taiwan had a substantial market for movie-watching. This kind of abnormal development arose because the government believed that film made by Taiwanese would threaten colonial control.To demonstrate the accuracy of this view, the paper will start with how Taiwan was influenced by Japan's "national film policy" and became Japanese films' dumping grounds. Taking the example of the 40(superscript th) anniversary exhibition of Taiwan's colonial rule, at that time shipping methods had become much more convenient and the government created incentives for the Japanese industry. This led to the dominance of the Taiwanese market by Japanese film industry, and the monopoly of movie wholesale screening rights by the Japanese, which reduce the capability of the Taiwanese to produce movies of their own. The operation of theaters gradually became replaced by Japanese people. The government further attempted to create "Taiwan Screening Cooperation Network." Progress was thereby made on controlling these movies distributed by the Japanese and consumed by the Taiwanese. The foundation of Taiwanese film consumption habits was thus established.To promote the consumption and educational function of movies, the government and the Japanese film producers intended to build habits of Taiwanese consumers by continuously improving theater facilities and promoting influence. In addition, the paper uses newspaper and magazine records as well as oral history together with a perspective of national history to observe the distribution channel of Taiwan's film market.