UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
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                                    FORM 8-K
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                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                Event Date requiring this Report: August 1, 2006

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                        CHINA DIRECT TRADING CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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               FLORIDA                 0-28331              84-1047159
      (State of Incorporation or (Commission File Number) (I.R.S. Employer
              organization)                              Identification No.)

                               10400 Griffin Road
                                    Suite 109
                           Cooper City, Florida 33328
                    (Address of principal executive offices)

                                 (954) 252-3440
              (Registrant's telephone number, including area code)

         Check the  appropriate  box below if the Form 8-K filing is intended to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

|_|   Written  communications  pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)
|_|   Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 FR
      240.14a-12)
|_|    Pre-commencement  communications  pursuant  to Rule  14d-2(b)  under  the
       Exchange Act (17 CFR 240.14d-2(b))
|_|   Pre-commencement  communications  pursuant  to  Rule  13e-4(c)  under  the
      Exchange Act (17 CFR 240.13e-4(c))





ITEM 5.02. Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers.

     On August 1, 2006,  William Dato informed China Direct Trading  Corporation
(China Direct) in writing of his decision to resign as a director from the China
Direct Board of Directors,  effective  August 1, 2006. Mr. Dato indicated in his
resignation  letter that he was  resigning  in order to devote his full time and
attention  to  the  operations  of  China  Direct's  majority-owned  subsidiary,
Complete Power Solutions,  LLC, and the expansion of its business. Mr. Dato will
continue in his current role as the senior operations executive of CPS.

ITEM 9.01 FINANCIAL STATES AND EXHIBITS

(c) EXHIBITS

The following exhibits are filed with this Report:


EXHIBIT NUMBER                      DESCRIPTION


None
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                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                    CHINA DIRECT TRADING CORPORATION

                                    Date:  August 1,  2006

                                    By: /s/ Howard Ullman___________
                                    Howard Ullman, Chief Executive Officer,
                                    President and Chairman