Trade　liberalization　is　often　a　contentious　policy　for　developing　countries.　This　paper　investigates　how　China　successfully　integrated　into　global　IT　production　and　fostered　innovation　through　trade　liberalization　under　the　Information　Technology　Agreement.　Empirical　results　indicate　that　the　reduction　in　tariffs　on　IT　products　had　an　asymmetric　impact　on　China＇s　trade,　significantly　increasing　imports　of　capital　and　intermediate　goods　while　modestly　boosting　exports,　primarily　of　consumer　goods.　Firms　in　the　IT　sector,　as　well　as　those　in　upstream　and　downstream　sectors,　have　increased　their　R&D　intensity　following　the　liberalization　of　IT　products.　Further　analysis　indicates　that　the　growth　in　R&D　intensity　stems　from　high-productivity　firms,　followed　by　mediumproductivity　firms.