It has been widely observed that the increasing openness of the Chinese economy, as measured by, say, the trade-to-GDP ratio, has been an important contributing factor to its growth performance. This chapter gives an overview of China’s foreign trade development, and identifies the policies that have promoted China’s trade performance. These policies included mainly decentralization of the trade management system, the regional targeting policy, and the sectoral targeting policy. The targeting policies used instruments such as tax breaks, foreign exchange retention privileges, government provision of cheap materials and credits, and duty-free imports. As a part of China’s regional targeting policy, the strategy of combining openness toward foreign investment with export orientation in the special economic zones (SEZs) and open coastal cities has been particularly successful. Among the targeted regions, Guangdong Province has been a model for developing a foreign investment-based and export-led development strategy.