This article analyses the changes of the competitiveness of China's chemical industry in recent years,international comparisons of competitiveness,and applies the methods such as value chain,to analyses the main factors affecting industrial competitiveness,and factors impeding the improvement of the industry's competitiveness. Only by relying on the domestic market to make more efforts to adjust industrial organization,speed up the rationalization of geographical distribution of industries in order to better address the challenges facing by China's chemical industry,improve the status of the international division of labour and enhance international competitiveness. <<