| In the 21st century, the process of economic globalization is accelerating. Along with China's accession to the World Trade Organization, a deeper integration into the world economy is an irreversible trend. In the face of the opportunities, China is also bound to be under the tremendous competition pressure of the external economic, and the international competition is becoming increasingly fierce. In this background, China's environment for the development of Chinese medicine industry is undergoing a fundamental change ,and the industry must be adjusted accordingly in order to adapt to the new situation.Competitiveness is the essential characteristic of the market economy. We locate the competitiveness in the industrial level is mainly because the industry plays a crucial role in a country's competitiveness strength. The national competitive advantage is the industrial competitive after all ,and as the comparison of enterprises competitiveness is cumbersome and difficult into a certain depth, we locate the international competitiveness in the industrial level ,which is more practical for research. The research of the international competitiveness for industry has been the political, academic attention. As the national treasure and quintessence of China, Chinese medicine is strongly embedded in the Chinese traditional culture and beliefs, and should have become one of China's national industries with competitive advantages. However, In the growing international market of natural medicine,the export of Chinese medicine has only take a low proportion among the international drug trade. China is a traditional Chinese medicine resources, production and consumption power, but not the Chinese medicine trade power, the international competitiveness of Chinese medicine industry urgently needs upgrading. Therefore, for Chinese medicine enterprises and the economic academic ,when they meet the opportunities and challenges of the globalization of the world economy , investigating the evaluation theory and methods of Chinese medicine industry has become a major theoretical and practical issues which is realistic and urgent.This paper includs a total of seven chapters.Chapteri,the exordium,mainly introduce the topic's source and meaning, the article's objectives, methodology,structure, innovation and the deficiency ; chapter II retrospect the theory of industry's international competitiveness ,which is maily based on comparative advantages and competitive advantages theories; Chapter III first introduced the concept of Chinese medicine and related drugs, summarize the international drug market and the modernization process of Chinese medicine industry and then using positive analysis methods dissertate the status of Chinese medicine industry, Including elements of conditions, market structure ,terms of trade and so on ; According to the result of positive analysis above, Chapter IV establish the comprehensive evaluation index system of Chinese medicine industry's international competitiveness, and then using factor analysis to analysis and evaluate the Chinese medicine industry's international competitiveness in order to find the main factors that decises or affect the international competitiveness of Chinese medicine industry and identify the problems and opportunities in the development of Chinese medicine industry . Chapter VI is the policy and proposals part of the paper. In terms of the problems, It propose some measures that parties should take to enhance international competitiveness of Chinese medicine industry .Chapter VII is the conclusions of the full text ,which summarizes the all analysis and results in this paper. |