China’s trade liberalization has progressed smoothly since the late 1980s. The gains and losses from agricultural trade liberalization are often unevenly distributed within a country, especially for China, which has nearly 100 million rural people involved in agriculture experience poverty. In this study, we use a national CGE model of China linking to GTAP model to track the changes of household income and expenditure patterns due to the impacts of WTO membership on China’s agriculture. Then we also compare several different scenarios to maintain a better trade policy for poverty elimination. The results from this study could be of great value for policy makers to identify courses of action for enhancing the positive income distributional outcomes and reducing any unfavorable effects from further changes in trade policy