The Malaysian Chinese family SMEs are striving for excellence in today's ever-changing competitive globalized marketplace and for internationalizing their investment particularly in mainland China. It is widely perceived that many well-established Malaysian Chinese family businesses seek to expand the enterprise beyond the shores of ethnocentrism governed Malaysia. Despite national differences, the similarities in history, structure, culture, practices, as well as familial and clan linkages in China provide rationale for considering Malaysian Chinese family businesses as part of the broader sociological grouping of overseas Chinese family businesses. In the literature on Chinese enterprise, this community’s firms are considered as a key player in the economy due to their entrepreneurial skills. Therefore, for this study, Chinese small and medium-scale enterprises in two areas of the manufacturing sector, that is plastic and food production will be examined. This study evaluates the impact of generational change when succession of next generation takes over the business on the ability and willingness of family SMEs to invest in China. There is still an exceptionally large body of literature that advocates the idea that the Chinese share a strong collective identity, which also influences the development of their enterprises. This study will determine if Chinese enterprises display an ‘ethnic style’, characterized by family firms and intra-ethnic business networks formed for mutual benefit to reputedly play a crucial role in capital formation and accumulation.This study gives careful consideration to the family members after first generations who were respondents, and also seeks through the interviews to gain qualitative data on the impact the central family figures have had on their organizations. Data collection methods employed here centred on company profile, critical event and the willingness to invest in China. The analysis able to draw on insight gained into the enterprises studied how organization characteristic bringing impact to the critical event they faced and finally effect their intention and willingness to invest in China.