Research Upon The Question Of Transfer Pricing In JV Joint Venture Company

With the fact economy being accelerated with internationalization course, transfer pricing problem emerged outstanding gradually in our country. Different from the developed country, the transfer pricing problem that our country comes across is not only related to tax losses , but also Chinese investor benefit invaded and occupied by multinational corporation.Accounting, Principles of Management and the economics research result to transferring pricing are applied to bring out mechanism and pattern having carried out in the open in this research. Seting from the contradiction of competitive edge and the deficit in JV, the strategic objective difference of Chinese & foreign investor are analysed. The multinational corporation gains the controlling power with it's exclusive assets and agent, but Chinese investor can't oversee JV with the environmental factor and other condition restrict . The inharmonious between controlling power and stock right necessity requires that the organization profit should be redistributed, so the multinational corporation has gained more organizing rent and invaded the capital input of Chinese investor by transferring pricing. The innate instability of stock right structure enhance the investment profit as well as transferring pricing trade effect of the multinational corporation.Only when Chinese investor changes notion and answers actively can they protect their own benefit from being infringed upon, perfect agency built, technology conversion and technological innovation accelerated and technological superiority formed are necessary in the joint venture.More attention paid to transferring pricing in joint venture will be appreciated and Chinese shareholder benefit will be protected.