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Foreign trade, also known as international trade or import-export trade, refers to the exchange of goods and services between one country (region) and another. This trade consists of two parts: imports and exports. For the country (region) that brings in goods or services, it is import; for the country (region) that sends out goods or services, it is export. This began to emerge and develop in slave and feudal societies, and developed more rapidly in capitalist society. Its nature and role are determined by different social systems.

Before the reform and opening up, China's foreign trade was under mandatory plan management and state responsibility for profits and losses. Since the reform and opening up, China's foreign trade system has experienced the transition from mandatory plan management to giving play to the basic role of market mechanism, from highly monopolized management rights to comprehensive opening, and from enterprises relying on the state to independent operation and responsibility for profits and losses. In the early stage of reform and opening up, China's foreign trade system reform mainly focused on reforming the single plan management system, decentralizing foreign trade management and operation rights, implementing the foreign exchange retention system and establishing the foreign exchange adjustment market. Absorbing foreign direct investment enabled foreign-invested enterprises to enter the foreign trade field as new business entities, breaking the monopoly of state-owned foreign trade enterprises. After that, China implemented the foreign trade operation contract system, gradually replacing mandatory plans with guidance plans. According to international trade rules, the export tax rebate system was established.

In October 1992, China clearly proposed the reform goal of establishing a socialist market economic system. In January 1994, the Chinese government cancelled all financial subsidies for exports, and import and export enterprises became completely responsible for their own profits and losses. The official RMB exchange rate was merged with the market adjustment exchange rate, implementing a single, managed floating exchange rate system based on market supply and demand. The field of foreign trade operation carried out pilot projects of enterprise shareholding and import-export agency system. In the same year, the Foreign Trade Law of the People's Republic of China was officially promulgated and implemented, establishing principles such as maintaining fair and free foreign trade order, laying the basic legal system for foreign trade. In December 1996, China realized the convertibility of RMB under current account. At the same time, China has repeatedly and significantly reduced tariffs independently, and reduced non-tariff measures such as quotas and licenses. On December 11, 2001, after 16 years of negotiations, China became the 143rd member of the World Trade Organization.