The strategic alliance of Taiwanese and Japanese companies in China is an issue emerging in Taiwan for years and has been extensively discussed by scholars and valued by industries. However, the extant literature has mostly focused on the individual company cases without taking the whole industry and its aggregate trend into consideration. To fill this void, this study obtained data from ENAA (Engineering Advancement Association of Japan) with an authorization by the Economic Research Institute (a section of Japan Society for the Promotion of Machine Industry), and successfully demonstrated the aggregate trend of the alliance of Taiwanese and Japanese companies until 2010. Of the 6583 Japanese subsidiary companies, 84 Taiwan-Japanese joint ventures in China were selected to analyze the investment strategies they used, including industry choices, timing, location and money invested. The final results suggest that the alliance led by the Japanese companies is the most common pattern of the cooperation. To further lay out the future of the alliance, this study also takes one of the capital and technology-intensive industries, the Japanese Engineering industry, as a case to show the viewpoints of Japanese companies to the alliance with Taiwanese companies, and the substantial managerial implications are given for the joint ventures in China.