Abstract:The industrial network locally formed by the investment of Taiwanese in mainland is important support for their flourishing development. The formation of the industrial network of Taiwanese shoe industry in Dongguan is not only mainly related to small and medium-sized enterprises but also is related to policy guide of Taiwanese Government, business credit and interpersonal relation, is helpful for Taiwanese businessmen to reduce transaction cost, to disperse business risk, to upgrade production technology, to keep stable relation between the enterprises and to ensure sufficient goods supply and in time supply of goods, and is conducive to the improvement of business efficiency and competitive advantage. Because there is complete industrial network, Dongguan shoe industry can still keep relatively strong competitiveness but should actively turn to high-end development while regional transfer. The middle and west region should use overall industry-chain mode to attract Taiwanese investment, attach the importance to emotional attraction of investment and realize the mode change of industrial transfer from external embedded-type to internal rooting-type.