Taiwan’s firms conduct the business with their host partners in China intensively and play the leading roles. The economic and business environment in China, however, has dramatically improved in recent years. This markets the leading role of Taiwan’s firms gradually shift to be following roles; and the industrial interaction modes (IIM) between Taiwan and China have been changed. Thus, this study, based on the literature, constructs an IIM Model to explore the IIM practices. The model consists of twelve elements and four constructs, namely Tendency of Learning, Cultivating, Utilizing, and Cooperation. To clarify the effects of IIM elements, this study employs some performance indicators as the criterions for an empirical survey. This study, to compare the change IIM, samples the Taiwan-owned firms operating in China in 1996, 2000, and 2004 respectively by mailing survey. The empirical evidences indicates that the samples in 1996 and 2000 confirm the IIM model, while the sample in 2004 present heterogeneous factor pattern with the IIM model. The empirical results exhibit that Taiwan-owned firms tend to behave high tendency on Cultivating Tendency while behave relatively low tendency on the other three constructs. Besides, the results indicate that, in sample 1996 and 2000, the input level of Taiwan-owned is positively correlated with its performance. Sample in 2004, however, presents negative correlation. The above findings signify that the IIM in 2004 is heterogeneous from that in 1996 and 2000, this study also provides some directions and suggestions for future academic and practical efforts.