The purpose of this paper is to examine the relationship of firms' ownership advantages, internal advantages, and entry mode to the performance of Japanese overseas subsidiaries in China based upon eclectic theory of Dunning. By using 146 Japanese manufacturing firms, we found that ownership advantages, internalization advantages, entry timing and entry experience to Hong Kong have positive relationships on profitability. However, we conclude that entry mode and capital participation by Sogo Shosha have no relationship on profitability.