To study the Taiwan Strait (TS), an unusual sea area, the numerical model in marginal seas of China is used to simulate and analyze the tidal wave motion in the strait. The numerical modeling experiments reproduce the amphidromic system of the M2 tide in the south end of the Taiwan strait, and consequently confirm the existence of the degenerate amphidromic system. On this basis, further discussion is conducted on the M2 system and its formation mechanism. It can be concluded that the tidal waves of the TS is consisted of the progressing wave from the north entrance and the degenerate amphidromic system from the south entrance, in which the progressing wave from the north entrance dominates the tidal wave motion in the strait. Except for the convergent effect caused by the landform and boundary, the degenerate amphidromic system produced in the south of the strait is another important factor for the following phenomena: the large tidal range in the middle of the strait, the concentrative zone of co-amplitude and co-phase line in the south of the strait. The degenerate amphidromic system is mainly produced by the incident Pacific Ocean tidal wave from the Luzon strait and the action by the shoreline and landform. The position of the amphidromic point is compelled to move toward southwest until degenerating by the powerful progressing wave from the north entrance.