In the past, there was a close link between bamboo products and people's daily life, and this played an crucial role in the history of Taiwan. However, with time passed by, bamboo products have been replaced by plastic items nowadays, fading out from people's memories. Since there are lots of mountains but little farmland in Jushan (竹山), the local residents grow bamboos to make their living, and that is also why Jushan becomes the most important area of bamboo industry in Taiwan. This study takes the bamboo industry in Jushan as the case, founding that in Japanese Colonial Taiwan, the government restructured local industry by national power. Combined with modern marketing skill, the state of agriculture products changed from self-sufficient item to international commercial commodity. This study also discusses the interaction between indigenous capital and colonial government, and points out that under the structure of colonial rule, indigenous capital is still independent. Indigenous capital looks for the new possibility of capital accumulation, willing to pursue new knowledge, learning modern business method, and then displaying the vivid and colorful appearance.