Abstract: After China became a formal member of WTO, many international company groups have presented the most direct challenges and opportunities to Chinese companies and China is also organizing its own large enterprise groups to participate in international competition. Therefore, both enterprise groups and tax divisions of the government will be faced with the problem of transfer pricing inside enterprise groups. Preconcerted pricing system is the common practice in international market. This paper analyzes the formation and development of preconcerted pricing system, studies the feasibility of implementation of preconcerted pricing system in China, and presents some proposals.