This paper makes an analysis and research on the nature of the theaters and their important roles in cultural undertaking and industry. Through three aspects including construction，operation and performance of theaters，the paper sets forth development process and status quo of theaters in China. Based on development process of theaters in China as well as the characters and problems of current second climax of theater construction，the paper points out there are five aspects to be innovated-system，mechanism，structure，form and method of performance industry.