One of the major international transactions today is the transfer of technology between nations. Because the U.S. and China are on opposite ends of the technology spectrum, one an advanced technological nation and the other technologically backward, they make excellent trading partners of technology. China’s history of self-reliance and its modern Open Door policy to realize its Four Modernizations are reviewed. This policy of openness is the key to the modernization of China’s economy through the importing of foreign technology. Likewise, the evolution of U.S. policy toward trade with China is analyzed. The U.S. has moved from a policy of total embargo to one of open trade with China, and this shift is examined with a focus on the Export Administration Act as amended in 1985, the Export Administration Regulations, and the multilateral control mechanism CoCom. Additionally, the importance of the Chinese contract when exporting technology to China is discussed. While the Tiananmen Square Massacre may have caused a temporary setback in China’s internal policy and with its relations with the U.S., the increase in the trade of technology between the two nations will not only help modernize China but also lead to peaceful relations between the countries.