This thesis aims to study the value-added tax and accompanying sales tax reform along with relevant transaction taxes such as product tax and consumption tax in China since 1979 when the China’s “reform and open-up policy” was implemented. This study employs the panoramic analyses from the view point of history and theory to examine the following three questions: How China’s value-added tax evolves to current status? What problems the China’s current value-added tax has? And where will the China’s value-added tax go? The findings of this study are useful for people in Taiwan to understand the China’s political, economic and tax systems, for Taiwan’s entrepreneurs doing business in China. Suggestions in this study can also be referred for China’s authority in deepening reform of value-added tax in the near future.