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With "Kyoto Protocol" gradually take force, carbon trading was born and developed rapidly. In contrast to prior studies on China's carbon emissions trading, we conduct a systematic research. First of all, we analyze the status of China's carbon trading. Second, we explore the production function model for relevant carbon trading and analyze the advantages and disadvantages of the carbon trading production function. Finally, based on the above discussion, several policy implications are exploited from four different perspectives, to promote the development of China's carbon trading.