Coke has always been more popular thus the reason it's more expensive. How many pepsi commercials have you seen compared to Coke? There's your answer!

I don't know about where the Pepsi is produced, but there is a Coke factory a couple of km from where I live. 

Generally you can assume that all soft drinks are produced locally. In some cases it may be that the main ingredient is a thick syrup that is shipped from elsewhere, e.g. to protect the recipe, so all the local manufacturer does is add water, bobbles and bottle it. 

By the way, Our friend Google can find a story about Coke having more of a carcinogen in China than in the US, which would lead me to think my syrup theory does not hold true for this particular product. 

i always wonder why a coke taste so bad here, i had one 3 years ago, nothing like a coke in atlanta , never drank another one here, also why china does not have a decent local soda to compete with pepsi or coke, most of their so called sodas taste like cough syrup watered down a little.

There's only two drinks I drink here: water and things with an import sticker on them.

the coke here taste far different then the coke in hong kong...

Why are they both cheaper than soda water and mineral water?

Coke, Pepsi, whatever, I don't touch any of that crap, doesn't matter in which country.

It is not only in China. In many parts of the world Pepsi is more aggressive with the pricing and the discounts than Coke. It is just a different marketing strategy

I buy them both, and they're the same price in my city. Haven't noticed this disparity...