This essay deals with the socio-political processes and the spatial transformation of Taiwan in terms of the formation of a global economy. The author analyses the new Taiwanese model of economic restructuring in the context of Asian-Pacific regional and industrial restructuring of the global economy. It consists of three elements: 1.The new international division of labour and the project of Regional Operations Center (ROC), 2.The new social relations and the state's national community project, 3.Rebuilding the nation state and the national territorial plan. As to the specific form of spatial transformation shaped by the new social political arrangement, there are three trends: 1.The space of flows as the transmitter in the global economy, 2.The polarized regions and the plantom "communities" in the devided cities, 3.The distortion of territorial development out of the release of agricultural land. Finally, the author points out the limit of the new accumulation model is the new role of the nation state. In terms of the social transformation, the urban politics between the global and the local are emphasized. And the firm urban politics between the global and the local are emphasized. And the firm centred local coummunitarianism, the progressive local governments, the alliance of cities, and the grassroots social movements are considered as the sites and the hinges of the resistance or alternative project arising from communities and social political actors.