As the economic，political，informational and cultural centre of South China，under economic integrative model of foreign investment-driving，enterprise-leading and government-promoting，Guangzhou economy developed very well.Yet，under backgrounds of energy saving and emission reduction，it was confronted with much problems.Firstly，assessed Guangzhou industrial status quo，found the main problems as follows：extensive way of industrial development，scarcity of resource supplies，less abilities of industrial self-adjustment，immature and incomplete industrial system，etc.Secondly，tapping concepts of circular economy，put forward four transitions for Guangzhou industrial upgrading，which included resource-orientation to capital orientation，physical economy to vacuum economy，ruptured economy to circular economy，fragmented economy to integrated economy.Thirdly，according to laws of circular economy，took circular economy as a breakthrough to build modern industrial system for urban industrial upgrading.Last，several suggestions were come up with：①to set up official institutions；②to perfect current legislation system；③to carry out regulation system；④to encourage technological innovation and；⑤to popularize concepts of circular economy.