After World War II, the Cold War caused profound in influence on the Far East. During the Chinese Civil War, Unite States supported the government of KMT all the time, and the USSR sided with the CCP. Consequently, the relation between Chinese Communist Government and Unite States had become sore gradually before 1950. Korean War is a major event in the Cold War because it turned the Cold war into a “hot” war; it also reinforced the hostile relation between PRC and USA. After the war, both sides remained to confront with each other in many aspects for a long period of time. The main purpose of this article is to explore the relationship between China and America during the Korean War. By tracing the development of the Far East before the Korean War, this article will analyze why Sino-American conflict bursted out, and then how the debates of the policy toward China among American authorities went on, revealing the progress of the negotiations and the battles. At last, this article will discuss the effect of the war upon the Far East and the relation between both sides.