The paper used the Eclectic paradigm to analyze the competitiveness of MNCs. From the aspects of ownership advantages, locational factors and internalization advantages, the paper studied on factors which determined favored competitive status of Japanese MNCs in China. Based on the 230 responses of questionnaire investigation to 702 Japanese parent corporations, the authors concluded some findings. The competitive advantages of Japanese MNCs in China come from the ownership advantages and locational factors...