This article is a comparative study of Taiwanese, Japanese and Korean business investments in China within the conceptual framework of cross-border investment and governance. In the era of globalization, Taiwanese, Japanese and Korean business investments in Kunshan, Dalian and Chengyang in China aim to link up with global production networks. The driving forces of investment include lowering costs, creating a better investment environment, building up mutual trust and institutionalizing the process of exporting from these areas through negotiations with local governments. In general, if local governments are capable of cross-border governance with foreign investors, this will improve performance and help stabilize business ventures during periods of international economic challenges.This study attempts to answer the following two questions: 1)What are the types, interactions and contents of cross-border governance and participation during different periods of FDI influx in Kunshan, Chengyang and Jinzhou? 2)In different regions of economic development in China, what are the interaction of and impact on institutional innovation and international synchronization in operations involving cross-border governance? This article finds that the experiences of Kunshan, Chenyung and Jinzhou and their interaction with the local governments do not align with the concept of cross-border governance in Western democratic society. Evidence in this article also indicates that China's local governments remain authoritarian and short-sightedly utilitarian. Likewise, the adaptation in governance is only limited to the economy, market, and compliance with international rules.