The free trade area of the Americas (FTAA) is scheduled to start functioning in 2005. It promises to be a huge market with a bright future for countries both inside and outside the region. While injecting vigor into trade in the Western Hemisphere, it will, however, pose a fierce competition to its non FTAA trading partners including China. The paper starts with an examination of the conditions of trade and economic relations between China and countries in the Western Hemisphere, followed by a well documented analysis of the coming serious challenges facing China against the backdrop of the formation of FTAA. It puts forth possible responses for China to seek opportunities to meet them. Recognizing that trade expansion with the vast region will be of important significance for Beijing to sustain a stable economic growth, the author makes some suggestions for positive action under a feasible strategy so as to cope with the unavoidable changes in that big market brought about by FTAA.