This paper, based on a long term observation of the period from 1996 to 2004, tries to answer the following questions: Why have some issues evolved to be important political cleavages which shaping party competition in Taiwan, while some other issues have not? Why have some issues affected elections at some times, but not others? And finally, has there been any change in issue evolution because of the party turnover in 2000? Unlike most industrial democracies where issues of economy and wealth distribution are salient for party competition, issues of economy and wealth distribution are relatively not so salient for party competition in Taiwan. Some argue that this is so because the Taiwanese government's economic policies had successfully resolved the problems of wealth accumulation and distribution over the decades as economic development heated up. However, the Taiwanese electorate has not punished the ruling party even though the wealth distribution has deteriorated and the economy has declined dramatically since the beginning of 2000. Taiwanese have not chosen the party which is generally thought of as good at handling the economy affairs. This shows that most Taiwanese voters seldom vote according to the economy and welfare distribution even though many parties and candidates do emphasize economy and social welfare policies in their campaign platforms. In contrast, the independence/unification issue shaped by ethnicity and national identity has been considered as the most salient issue since the 1990s. Not only has it dominated political discussions of political elites and the public, but it also has shaped party competition and affected the transfer of political power. This paper tries to explore the reasons for these phenomena through two angles: that of elites, and of the public. This paper examines four issues, reform/stability, independence/unification, social welfare, and environment/economy, and shows how partisan elites frame and develop these issues to attain their political goals, and how Taiwanese voters respond. Research findings show that the independence/unification issue is the most likely to evolve into the most influential issue in Taiwanese politics. This is so because all major parties have a clear and distinct position on the independence/unification issues, and most Taiwanese voters have a clear-cut position on the issue. Furthermore, Taiwanese voters make political decisions based on the issue. After the party turnover in 2000, the parties' positions on the dependence/unification issue became even more polarized. The Pan-green's position on the dimension is moving toward an even more pro-independence stance. In the meantime, the Pan-blue's position is becoming even more pro-unification. The growing polarization between the two blocs has made the independence/unification issue even more salient and has had decisive impacts on Taiwanese voters' political attitudes and behavior. In contrast, because the diversities among parties in other three issues are getting closer since the party turnover, it is more difficult for a party to take all credits from the issues. In the near future, it is quite possible that all parties will still focus most of their efforts on framing and developing positions on the independence/unification issue rather than on other issue dimensions. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]