The purpose of his paper is to investigate the changing international trade structure on Taiwan toward China and Japan. It reveals an empirical explanation on the transition trend of industrial movement and global competitiveness. The analyzing approach is adopted the index of RCA covering machine and electronics items in the period of 1993-2003. This study shows that Taiwan is increasing global competitiveness in machine and electronics items and is narrowing their development gaps with Japan. In contrast, Taiwan is losing her global competitiveness in some parts of industrial parts to China. It is indicated that China is increasing her industrial competitiveness through the learning process in technologies from Taiwanese firms and other foreign firms.