This paper introduces the present situation of Chinese retail business,analyzes on the developing trends of Chinese retail business,and probes into the countermeasures for the development of Chinese retail business.

This paper analyzes on the positive and negative influences of the arrival of the foreign retail enterprises on Chinese retailing market and enterprises,and based on the present situation of Chinese retail business,points out the opportunities and challenges that the domestic retail enterprises face,and forecasts the developing prospect of China retail business.

Small and medium-sized retailing is not only distribution channels,it must create its brand as well as manufaturing.

This paper expounds the present situation of and problems in Chinese retail trade, analyzes on the current development of the foreign retail trade and its competition strategy, and in the light of the challenges and impacts of the strong competitors, puts forward some competition measures that should be taken by Chinese retail trade.

Since the overall opening to the outside world on December 11th, 2004, the development of the Chinese retail trade once more becomes one of the focus problem of the Chinese economy.

Therefore, it is urgent to improve the competence of China s retailers and develop some of them into large retail groups.