This paper investigates the international transfer pricing methods adopted by multinational corporations (MNCs) in China and how their choices are affected by specific corporate attributes in the context of the business environment in China. Empirical test results based on structured interviews indicate that MNCs having a local (Chinese) partner in management tend to adopt market-based transfer pricing methods. The influence of local partners on the choice of transfer pricing methods is modified by the impact of the source of foreign investment, as US-sourced MNCs are more likely to use cost-based pricing methods for international transfers. The influences of these 2 variables on the choice of transfer pricing methods are significant both directly and indirectly. There is also some evidence that export-oriented enterprises are more likely to adopt cost-based transfer pricing than those aiming at China's domestic markets.