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Drawing on ethnographic fieldwork in a medium-sized city in Northeastern U.S., this study aims to analyze the differentiated roles of co-ethnic social networks in the processes of acculturation and adaptation for Chinese restaurants in different market niches. Through comparison between the two field sites regarding ways of capital accumulation and relationships with the local Chinese community, this study reveals the causes of segmentation, convergence, and competition in the Chinese catering business, which engages in the discussion of the thesis “ethnic economy” and “segmented assimilation”. My findings indicate that the adaptation of Chinese catering business is an ongoing and flexible process. The levels of being “ethnic” or “assimilated” are strategically modified across time in response to changes occurring in local clients and competitions. Chinese restaurants use self-differential strategies to find their own balance between “being authentic” and “being Americanized” so they can enter and succeed in certain market niches. This study reveals a renewed process of the formation of a geographically dispersed Chinese ethnic economy comprised by recent cohorts of Chinese migrants in the U.S who reside outside close-knit ethnic enclaves.