This paper main purpose is to define Korean War gave some direct impacts into China’s politics and economy. China’s involvement in Korean War was triggered by several reason which is coming from either internal or external factors. In order to understand all of those reason, this paper would try to provide some China’s point of view that related with the answer. Furthermore, this paper also would give some explanations of how China deal with all the consequences of its decision in Korean War by using a different approach, such as new policy which called by five principle of peaceful coexistence.