The paper examines the ways in which indigenous Chinese firms are competing with FDI influx in China and how MNCs operating in China are trying to come out victorious in face of such stiff competition. nternational Marketing is a subsystem of marketing that thrives on the interaction of nations since it involves business transactions across the borders and is therefore grossly transnational in nature. These transactions help turn geographical boundaries into frontiers and therefore influence the world markets immensely. Since most developed nations are slowly turning towards a more and more services sector centric economy, and the retail sector being one of the foremost of the industries dominating the services sector across the world, international business cannot afford to do away with the impact that the retail sector has made on the economy