The objectives of this paper are to review the situation and prospects of Chinese grain industry and to assess the effects of China's WTO affiliation on Korean grain industry. There exist various views on whether China can attain self-sufficiency of grain after joining the WTO. However, there exists a common view on increasing unstability in the world grain market due to the fall in grain stocks in China. There will be a little direct effect of China's WTO affiliation on Korean grain industry in the short run. Grain import from China will remain stable until China's agriculture experiences major structural change due to the market opening, e.g. resources move from grain to horticulture etc. Rice import from China will increase even in the short run.