The Yulon Motor Company was a product of such a mentality. Established in a township famous of its tea and wood industry, the appearance of Yulon has had dramatic effects in the development of the Sanyi Township. This study aims to analyze the dynamics between Yulon and Sanyi in the past thirty years in order to realize the historic linkage and degree of influence of industry on local development. The transformation of Yulon and Sanyi in recent years is also explored so as to unlock the myth of local dependence on manufacturing.