There are limited studies evaluating multinational corporations (MNCs) from different countries, and a comparison of the leading Asia Pacific economies, Japan and China, offers useful insights. This contribution considers in turn business strategies, firm-level capabilities, management organization and government policies in determining the patterns and impact of Japanese MNCs and Chinese MNCs in host economies. It reveals the relevance of phases of internationalization on strategic intent, the cross-border transfer of capabilities, and the costs and benefits of parental firm control vs. subsidiary autonomy.