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Abstract A revised gravity model has been adopted in the thesis to measure the changes of bilateral trade costs of China and other 28 countries during 1992~ 2007.The results are as follows: China’s trade costs take on a declining trendand the bilateral trade costs between China and developed countries is lower than that of developing countries. As the trade costs between China and major trading partners take on a declining trend, which even has room for further decline, the major policy significances in this thesis are that China shall continue to excavate the way to reduce the trade costs in order tofurther enhance the export competitiveness.