This paper aims to reveal that China’s ‘Opened Catch-up’ strategy confronted many obstacles, at least short-terms, by case study of passenger car industry. For this, the contents and achievements of China’s new Auto industrialization strategy were analized and evaluated by linking to trade issues. Chinese government has been effort to foster the auto industry with self-relianced and competiveness in globalized economic environment symbolized by joining the WTO, and the renewed auto industrial and trade strategy was the results of these efforts. Promoting the new auto industry and trade strategy including fostering independent technology and brand, the auto exports, new forms of the “Trade related Investment regulations” were the Chinese government’s own strategies to fit and hit back to promoting catch-up strategy within the globalization. But the result of these efforts reveals the new strategy confronted with so many difficults, notwithstanding the short-term and partial success. Efforts to develop independent technologies and brand cannot yet free from the level of ‘sail under false colors’. Strategy to exporting the car also cannot abtain fruitful results notwithstanding the two-three years of short achieves. Lastly, the ‘Trade Related Investments Regulations’ also failed after defeat - it bacames the first lose case in WTO disputes - in lawsuit in the WTO.