Abstract:With the penetration of division of labor, the expansion of trade, and the evolution of technological change, technology is becoming an engine for the development of international division of labor and international trade. Technology factors are studied at every stage of the development of International Trade Theory. Researches on the relationship between international trade and technological change improved the New Growth Theory and the New Trade Theory. In order to enhance competitiveness in international trade, China needs to perform independent innovation and to introduce advanced technology and direct investment to achieve technology spillover benefits.