Foreign trade, also known as "international trade" or "import and export trade", refers to the exchange of goods and services between one country (region) and another. This trade consists of two parts: import and export. For the country (region) that imports goods or services, it is called import; for the country (region) that exports goods or services, it is called export. This phenomenon emerged and developed in slave societies and feudal societies, and became even more rapid in capitalist societies. Its nature and function are determined by different social systems. 

Before the reform and opening up, China's foreign trade was managed under mandatory planning and the state bore the full responsibility for profits and losses. Since the reform and opening up, China's foreign trade system has undergone a transformation from mandatory planning management to leveraging the fundamental role of market mechanisms, from a highly monopolized management right to full liberalization, and from enterprises relying on the "big pot meal" provided by the state to independent operation and self-responsibility for profits and losses. In the early stage of reform and opening up, the reform of China's foreign trade system mainly involved reforming the single planning management system, delegating foreign trade management and operation rights, implementing the foreign exchange retention system and establishing a foreign exchange adjustment market. Attracting foreign direct investment enabled foreign-invested enterprises to enter the foreign trade sector as new operating entities, breaking the monopoly of state-owned foreign trade enterprises. Subsequently, China implemented the foreign trade operation contracting system, gradually replacing mandatory planning with guiding planning. According to the common rules of international trade, an export tax rebate system was established. In October 1992, China clearly proposed the reform goal of establishing a socialist market economy system. In January 1994, the Chinese government abolished all fiscal subsidies for exports, and import and export enterprises transformed into fully self-responsible for profits and losses. The official exchange rate of the RMB was aligned with the market adjustment rate, and a single, managed floating exchange rate system based on market supply and demand was implemented. Pilot programs of enterprise shareholding and import and export agency system were carried out in the foreign trade operation field. In the same year, the "People's Republic of China Foreign Trade Law" was officially promulgated and implemented, establishing principles such as maintaining fair and free foreign trade order, and laying the basic legal system for foreign trade. On December 1996, China achieved the convertibility of the RMB under the current account. At the same time, China significantly reduced tariffs multiple times 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.