The objective of this study is to evaluate the configuration of China's grain production pattern and the implications for agricultural trade. A spatial equilibrium model is developed to optimize grain production and distribution in China and its trade relationship with its trade partners. This study focuses on four grain crops: rice, wheat, com, and soybeans. The model divides China into 31 producing regions and 31 consuming regions. The model also includes seven exporting countries and six Asian importing regions. Results indicate that China can improve its grain production and social welfare through production specialization under a free-trade environment. China could become a major wheat and soybean importer, and a com and rice exporter to Asian countries. The study also provides perspectives on U.S. exports to China and other Asian countries.