Since the 1970s, a wave of liberalization has occurred in China, introduced by Deng Xiaoping. This is one of the main reasons for China's rise to one of the world's economic giants. Over the last 25 years of the century, China's economy experienced massive economic growth of 9.5% year-on-year. This was of great importance for the country as it quadrupled the gross domestic product (GDP) of the country, thus leading to the rescue of 400 million citizens from the threats of poverty. By the end of the 1970s, China ranked twentieth in terms of global trade volume and was considered the world's leading nation in terms of trading activities (Kaplan, 53). This also predicted that the country would record the highest GDP growth across the world. The massive increase in Chinese trade relations was fueled by the United States in 1979 through normal trade relations between the two countries. Furthermore, China's failure to join the World Trade Organization (WTO) in 2001 also facilitated its trade activities with several countries, including the United States (Kaplan, 57). However, trade relations with the Chinese have been difficult due to the massive trade imbalances in the recent past, which are growing exponentially. US protectionist policies, especially in Washington and Beijing, have put pressure on the Chinese to revalue their currency and protect it from counterfeits, which could have negative effects on trade relations. This paper provides a comprehensive discussion on foreign trade relations with China. It also provides an elaborate discussion on the impacts of foreign transactions...... middle of paper ......hina Business Review 40.1 (2013): 13-17. Business origination completed. Network. December 13, 2013.Kaplan, Eden. “The difficult US-China trade relationship.” Background (2006): 50-72. 13 December 2013. .Sangvhi, Saurabh. "Trade with China. (US Senate votes to extend normal trade relations with China) (short article)." Harvard International Review 1 (2001): Academic OneFile. Network. December 13, 2013. Shirley Ye, Sheng, and Yan Ma. “China vs. United States: Market Connections and Trade Relationships.” International Journal of China Marketing 2.1 (2011): 45-57. Business origination completed. Network. December 13, 2013.Zhang, Jianhong, Arjen van Witteloostuijn, and J. Paul Elhorst. "Chinese Politics and Bilateral Trade Links." Asian Journal of Political Science 19.1 (2011): 25-47. Premier of academic research. Network. December 13. 2013.