Suggestions on the improvement of China’s current industrial policies for Traditional Chinese Medicine，on the one hand，aims to resolve the primary drawbacks in industrial policy-making，and，on the other hand，revises the current industrial policies to being accustomed to the markedly expanding demand. Our main suggestions are five-fold：first and foremost，strengthens the construction of innovation system，and improves innovation capacity；secondly，speeds up the pace of upgrading of industrial structure in Chinese Traditional Medicine industry；thirdly，deepens the reform of healthcare system，and smoothens the relationship between drug prescribing and dispensing；fourthly，sustains a market settings fostering fair and ordered competition；the last but not the least，improves government self-building.