The purposes of this paper are to explain the performance difference of Hyundai Motor and Toyota Motor in the Chinese market from the perspectives of resource focus and political & cultural conflicts and to suggest an analytical framework and some managerial implications for successful FDI in the market. Although Hyundai was far behind Toyota when it began to enter the Chinese Market with FDI, the company was able to achieve better performance in general than Toyota by focusing its resources in the market and implementing investment activities such as partnership with one partner, concentration of production and R&D in one area, utilization of multinational and local suppliers as well as Korean suppliers, establishment of centralized distribution channels, and intensive introduction of new car models. In addition, the environmental factor of the political & cultural conflicts between the host country and home country was more favorable to Hyundai than Toyota, and this had impact not only on the investment decisions but also on the direct market performances of the two companies. In the final part of the paper, an analytical framework and some implications for successful FDI in the Chinese market are suggested.