“Cultural proximity” is probably the most cited and applied concept in the literature on international cultural exchange in Taiwan. However, most studies and applications use it as a theorem without the necessary introduction to its formation context, possible revisions, or the proper adjustment required for its application. Consequently, speculative and methodological fallacies have appeared in many studies. This article reexamines the theoretical concept of cultural proximity and its employment in Taiwanese communication studies through a critical and metatheoretical review of the relevant literature. Significant empirical data are also provided that verify the central argument of the theory. Finally, this article suggests a modification of the concept according to the theories of cultural identity and political economy. The main objective is to improve the theoretical reliability and effectiveness of local studies of international
cultural flow.