China has made significant changes to its foreign trade policies, moving from government incentives to market competition for exports and from strict controls to liberalization for imports. The reforms in the 1990s showed China moving towards trade liberalization. The study found that China's trade policy reforms have been effective, leading to positive economic growth. China's unique economic and political conditions have shaped its reform approach, with a gradual move towards freer trade. The challenge now is to balance trade liberalization with government intervention to establish a socialist free trade system.