Capitalizing on the most recentestimates of agricultural price distortions in China and inother countries, this paper assesses the economic andpoverty impact of global and domestic trade reform in China.It also examines the interplay between the trade reforms andfactor market reforms aimed at improving the allocation oflabor within the Chinese economy. The results suggest thattrade reforms in the rest of the world, land reform andhukou reform all serve to reduce poverty, while unilateraltrade reforms result in a small poverty increase.Agricultural distortions are important factors indetermining the distributional and poverty effects of tradereform packages, although their impacts on aggregate tradeand welfare appear to be small. A comprehensive reformpackage which bundles the reforms in commodity and factormarkets together may benefit all broad household groups in China.