Abstract: Before 1949, Kuomintang government continuously expanded and monopolized bureaucratic-capital enterprises by political power, and levied exorbitant taxes to or squeezed out civil capitals, resulting in the shrink of industry and commerce, the deviation of morale and the emigration of government to Taiwan in the end. After 1949, Kuomintang government fostered the large quantities of the bureaucratic- capital enterprises (the government-operated enterprises) in Taiwan, which made the outstanding economic achi...