Can foreign brands survive a price war in China?

Image via Wikipedia

One of the key tools for competition in China is the price war. I have been writing a bit more about this strategy in the past, and so when I learned about foreign restaurants and other retailers starting a price was intrigued. The Forexpros:

When they entered the Chinese market -- many of them in the 1990s -- Western consumer brands sought to set themselves apart from their local competitors by charging more and presenting the mark-up as the price to be paid for better quality and service.
But now under pressure in their home markets and in a bid to shore up sales, foreign retailers are jumping into a price war in China to secure their share of the growth of the world's third-largest economy.

The article mentions only two companies, Carrefour and McDonalds, but suggests others - including domestic competitors - are following. This could potentially become a fascinating shoot-out, where foreign companies have to prove that they have been adding advantages in terms of managing the supply chain and logistics, that much they can beat domestic competition. I'm nog convinced right away.