Abstract: The Chinese‘Trade with European Countries in the 18th century includes two parts:one is the Canton Trade;the other is the Chinese junk trade to major East Asian Ports such as Manila, Batavia and Malacca,the European colonial entrepots. In the 18th century China was a technological advanced country .The balance of trade at Canton way was very much in China’s favor, because they needed few foreign products while Western traders purchased large quantities of tea，silk and porcelain.Meanwhile the Chinese junk played an important role in supplying European and local regional markets with Chinese products.The rapid and vast expansion of the foreign trade spurred the growth of the Chinese economy，especially on the coast of China。On the other hand the coming of European Countries to East Asia sent a challenge to China.This article presents the comparative study of the Chinese and Western policies on the trade,and demonstrates the effects of these policies on the economy and on Sino-West relations during the 18th century.