China, being the world's biggest developing country, has produced a rising economy since its adaptation of the "open door" policy in 1979. The commercial market in China has been widely recognised as one of the world's biggest by the turn of this century. It is therefore a logical decision for China to develop a multimodal transport system for the increasing commercial activities in the country. China chooses to develop the combined transport system which then leads to the development of a fully integrated multi modal transport system. However, due to various technical and environmental constraints for freight transport in China, there are lots of inevitable changes and improvements in order to achieve the goal. A linear multiple regression model is used to determine the major explanatory factors affecting the combined transport freight flow in China. The same modelling technique is then applied to the three regional areas of China in order to find the common core factors among these models. The hypotheses are tested against these core factors to see whether they can be accepted. Further research findings on those important factors bring out the important issues concerning with the strategies for effective development of the multimodal transport system. Apart from de-regulation, the Chinese government should reduce its intervention to transport operations and let the operations be dynamically controlled by market demands. Moreover, the techniques and styles in transport management should adapt to strategic management which can provide effectiveness and efficiency in freight transport enterprises as well as in the transport industry as a whole. Under the effective and selective assistance. generally from the western world, it is envisaged that China can develop its multi modal transport systems in a much shorter timescale. By then, China can boost its prosperous foreign trading activities to a much higher extent.