In the wake of increasingly economic integration across the Taiwan Strait, Beijing has accustomed itself to manipulating economic measures to gain its political benefits. Ma administration even regards China’s tourism as the key to revitalizing Taiwan economy, as in turn makes Taiwan more dependent on China’s economy. It has brought to Taiwan more and more potential and hidden crises of sovereign independence and national security. The Democratic Progressive Party won a landslide victory in the presidential and legislative elections on January 16th, 2016. Beijing threatened that if the president-elect Tsai Ing-wen still refuses to accept the 1992 consensus, it will take a three-stage sanctions against Taiwan, and Chinese tourists will be one of the bargaining chips. This thesis attempts to explore the challenges of tourism industry that Taiwan may face and how the government and businesses should strategically respond the structural development of cross-strait tourism exchanges and Beijing’s manipulation of its Taiwan policies.