This study explores the impact of entry mode, industrial environment, and firm characteristics on performance of Taiwanese SMEs in Mainland China. By applying MANOV A, canonical correlation, and GLM regression, 115 firms are empirically analyzed. Results of this research indicate that industrial environment and firm characteristics have significant influence on firm's foreign performance. There are significant differences among various entry modes (wholly owned subsidiary, majority joint venture, equal (SO/50) joint venture, minority joint venture, and non-equity mode) on five performance indicators (profit rate, sales growth rate, satisfaction of profit rate, satisfaction of sales growth rate, and satisfaction of goal realization). Overall performance rank indicates: wholly owned subsidiary>majority joint venture>non-equity mode>equal (SO/50) joint venture>minority joint venture.