Trade volume between Pakistan and China largely remained insignificant. It did not constitute a viable economic partnership between the two countries until the first decade of the present century. Bilateral trade could further strengthen Pakistan-China relationship. China-Pakistan Free Trade Agreement (FTA) in effect from July 2007, introduced a new dimension in the promotion of the bilateral trade. As Pakistan could not devise a dynamic trading policy toward China, this resulted in a huge trade deficit with China after 1984. Pakistani industry and exporters should adopt new measures to increase exports to China and to bring about a reasonable equality in mutual trading relations.