Basing on institutional theory and the panel data of Taiwanese FDIs in China and the US. from 2007 to 2023, we investigate how the geopolitical tensions between China and the US. impact on the FDI decision. The empirical results validate the “specific geo-strategy” of Taiwanese MNEs to protect their FDIs from the geopolitical tensions, in which they resist to invest in China, while tend to invest in the U.S., suggesting the institutions of the US. safeguard Taiwanese FDI from the geopolitical risks. We further found that foreign institutional investors tend to seek the US. institutions to preserve the reputation of their investing Taiwanese MNEs when the geopolitical tension increase, thus supporting the specific geo-strategy. Nevertheless, controlling family of those Taiwanese MNEs show reverse effect toward the specific geo-strategy. Specifically, to cultivate social-emotional-wealth, the controlling family of Taiwanese MNEs tends to get involved in local relation network of China, while that can result in significant operational costs for Taiwanese MNEs when they perform in the “specific geo-strategy”.