Abstract: As much by luck as by design, China stumbled onto an export and foreign investment that has proved remarkably successful, helping the economy move quickly to a market-based system. China has employed some principal economic instruments to promote foreign investment and an export culture since 1978. In 1979, after three decades of inward-oriented trade and foreign investment policies, China switched course and launched an open-door policy. Economically, China has proved themselves the most successful regions of the south and southeast taking the advantage of their particular local circumstances. During 1980 to 1990, GDP of China grew annually by 9.5% while export grew at an annual rate of 11%. The growth continues and in 1999-2000, GDP growth was 7.3%. The discussion of the issue here is to identify the key trade and foreign investment policies that have led to this dramatic growth. And what lessons can Bangladesh derive from China�s experience?