Abstract:Since China's entry into World Trade Organization, the trade association has been facing severe challenges which mainly come from three aspects: the acceleration of the process of market orientation; the reform of government organization and the transformation of government function; the perfecting and upgrading of economic structure. These challenges have an overall and fundamentally decisive influence on the development and prospect of China's trade association. In order to fit in with the social development after the entry into World Trade Organization, China's trade association should devote major efforts to self renovation. By perfecting organizational systems and expanding management function, traditional trade association should enable itself to transfer from a closed and self discipline type to be an open and pioneering one.