With economic system reform’s deepening in our country, more and more transnational corporations come and invest in China one after another. Especially, the investment field is enlarged more than ever after China’s entrance to WTO. That not only promotes our country's economic development but also brings in some negative effects, in particular, which is caused by transnational corporations’ inner transfer price. Transnational corporations can control the parts of corporations, make them follow the aim of global strategy and ensure transnational corporations gaining the max profit. It is not draft in terms of supply and demand, but that constitute in terms of global strategy and integral profit. The transfer price of transnational corporations is a peculiar field that concerns larger and important influence. This paper begins at some news about some foreign corporations’ loss, which is not really in fact. Then ways and effects of transfer price brought by the transnational corporations are analyzed. At last, some control measures are supposed.
【Key Words】Transnational Corporations; Transfer Price; Inner Trade