o reach the goal of increasing Trade to US$ 20 billion, the two countries still face many difficulties. Although the difficulties still exist, in a long run, the potential development is large and the prospect is broad, and here are some observations:Firstly, tow countries both have the desire to strengthen the trade relationship, and this kind of desire increases through the years. Now, the unbalance between political relationship and trade relationship attracts the great attention of leaders, and to construct a new economic and trade relationship has become the main task in the near future.Secondly, the problems and contradicts exists indicates that, to a reforming countries like China and Russia, the interference of governments is very essential to develop the national economy and foreign trade. As a result, the bilateral trade is under the macro-control of the two governments, and cooperation is mainly between large corporations or administrations of two countries.Thirdly, from the whole, the basis of Sino-Russia trade still lies in the mutual aid and coordinate, especially in the fields like energy, nuclear-electricity, and aeronautics. Meanwhile, the two governments also realize that there are still many new fields for Sino-Russia trade, so some new styles, such as mutual benefit, should be applied to practice.Fourthly, In Feb 1998, the Sino-Russian Regional Cooperation Committee was founded, which set up a solid base to develop Sino-Russian local and border trade. The situations above indicates that, through the efforts made by the two governments, and based on the experience of the past ten years, China and Russia are constructing a new type of trade relationship.3. Policies Recommendations3.1 The Strategic ApproachThe importance of the Sino-Russian trade relationship should be fully realized and understood as a strategic problem. The past bilateral trade relationship should be appropriately estimated and the problem that the un...