The trade balance between Turkey and People’s Republic of China（PRC）has been steadily deteriorating against Turkey since the early 1990’s，when trade relations between these two countries started to gain momentum. In this study，the sources of this ongoing imbalance and the resulting effects on the Turkish economy are examined from different perspectives，namely the sectoral concentration of trade and the intra-industry trade. According to the findings，ever since the trade relations picked up between these two countries，imports from PRC into Turkey have always been more diversified than exports from Turkey into PRC，and since the mid-2000’s，they have exhibited diversity particularly in mid-high and high-technology manufacturing sectors. Based on our results，although it may be difficult to correct the large trade balance between Turkey and the PRC in favor of Turkey，higher diversification of exports to PRC and a shift towards manufacturing of higher value added products appears to be essential.