This paper studies how the Taiwanese businessmen should face the trend of "Guanxi" institutionalization, and what its impact on Guanxi network development and influence on their perceived performances are. We used the executive managers of market development working in the Shanghai and Canton areas as the samples to conduct questionnaire surveys for data collection. We made a statistical analysis on the data and got several findings. Guanxi network buildup has a significant influence on the perceived performance of Taiwanese small and medium electronic enterprises, but Guanxi institutionalization does not. Gender difference does not make a significant difference on Guanxi network buildup, but the length of time having worked in China does make a significant difference.