This essay analyzes the ethnic identity and cross-strait relations in Taiwan from the aspect of nationalism. Basically, the author think that nation, ethnic groups and identity are all constructed. Nation is an imagined community, and nationalism is the result of certain purposes. Since statehood is the ultimate goal of nationalist's activity, nationalism will include separatism. In other words, there is no so-called new community, a birth of new community means a breaking of old community. For those supporters of Taiwanese independence, Taiwanese nationalism is a new construction. They don't want to consider themselves as Chinese. For those supporters of unification, the historical link of culture, blood, and language beween Taiwan and Mainland China is the stuff of Chinese nationalism. Both ideologies were created to resolve cross-strait relations that had not existed before and would have disappeared in the future. In terms of cross-strait relations, this is a problem of "psychological", so they have to identify with the ethnic groups. But the future development of cross-strait was decided by the international atmosphere, and I am afraid fighting is still the final means of resolving this dispute.