The studies on "Republican Literature" have drawn much attention since the new century, and have proposed a new analysis framework for modern and contemporary Chinese literature that amid the "Republic of China" and of the "People's Republic of China". Based on the previous research, I employ "Republican Chinese Literary System" as the method and try to figure out the changed and unchanged of literary policy and of fiction writing from "Republic of China" to Taiwan. This paper indicates that, just like "the Yan'an spirit" is an important component of "Communist China", "the Chongqing experiences" is also the foundation of literary system in "Liberal China". First and foremost, the "Nationalist Art Policy" succeeded to the experiences of anti-Japan and integration between the KMT (Chinese Nationalist Party) and CCP (Chinese Communist Party); after 1949, it turned to anti-Communist and reconciliation between mainlanders and islanders. Besides, the fiction writing under the literary policy of "Three People's Principles" reveals a change from "the revival base of returning to Mainland China" to "settling and homing in Taipei". Last but not least, this paper analyzes that although "Republican Chinese Literary System" after 1949 makes Taiwan "republicized", the "Republic of China" has also "Taiwanized".