Luo Yi-jun is one of the most important contemporary writers in Taiwan. His novel, Western Xia Hotel, uses real historical archives of Western Xia and transforms them into fiction of contemporary Taiwan society and its members’ experiences of diaspora and exile. Characters in this novel live in dream worlds, reflections of mirrors and shadows, indulging themselves in traumas and sufferings. Tunik, the protagonist of the novel, and his family fled mainland China after the civil war, but he constantly feels alienated from the mainstream Taiwan society and endures loneliness due to his marginalized position. This paper deals with three questions. First, the author examines under what kinds of historical, cultural, social and political circumstances, along with changing ethnic relations, this novel has proposed a post-loyalist speaking position to represent the process of “becoming non-Taiwanese.” Furthermore, this paper intends to analyze in what ways post-loyalist perspectives merge with postmodern ones to construct identity as a play of signs. The second question of this paper is to explore the dynamic interaction between “de-sinification” and “becoming barbarian.” “Han” and “Hu” are elements of binary opposition that depend on each other for definition and these two have become a chain of signifiers with ambiguous and playful meanings. The author hereby proposes the concept of the paradox of Taiwanese identity in order to illustrate the point that in this novel, those who do not identify with Taiwan are also Taiwanese. The third issue of this paper deals with the metaphor of hotel in this book. Hotel is a metaphor referring to Taiwan, a real and fictional space for home as well as the road of exile. Luo Yi-jun uses the metaphor of hotel to express the process of transformation from being a sojourner to a resident and again a traveler. Thus his writing can be regarded as adopting the speaking position of post-loyalist to describe the phenomenon of placed-based exile. Through the process of flowing and becoming, what is emphasized by the novelist as “becoming non-human” changes into “becoming non-Taiwanese.” The novel also implies the next generation will become Taiwanese, and thereby indicates the meanings of becoming Taiwanese are open and in constant flows instead of being stable and static.