Over the past twenty-five years, Chinas foreign trade has achieved great success. The maindeterminants behind this success include market-oriented reform, appropriate trade andexchange rate policies, and the active participation of foreign-invested enterprises. However,China is far from completing the transition in trade structure, and is facing many difficultpolicy challenges in maintaining its export momentum into the future. Over the past twenty-five years, Chinas foreign trade has achieved great success. The maindeterminants behind this success include market-oriented reform, appropriate trade and exchange rate policies, and the active participation of foreign-invested enterprises. However, China is far from completing. The transition in trade structure, and is facing many difficult policy challenges in maintaining its export momentum into the future.