Based on the analysis of the current situation and development trend of international machine tool industry，this chapter focused on the development scale，economic operation，industrial structure，trade situation and technical level and problems of Chinese machine tool industry in 2016. The analysis shows that Chinese machine tool industry has experienced rapid development over the past decade，and has made great achievements. In Chinese machine tool industry 2016，general development tendency is on the up，growth rate of each studied index picked up，and got the significant technology breakthrough. However，the traditional market points to sluggish demand，structural contradictions remarkably appear. For these reasons，we should be address its realistic weakness with speed，and take accelerating structural adjustment as the strategic focus in Chinese machine tool，especially that we should concentrate on the market competitiveness of middle-high-grade numerical machine tools.