This paper gives deeply study and analysis on the present situation and the future tendency of development of Traditional Chinese Medicine （TCM） Industry in China and all over the world.It firstly discussed the current developing situation of TCM industry in China through analyzing the raw material，production，circulation，and R & D parts，which dissected the position and impact of TCM industry of China during the world-wide structure of natural medicine industry.It indicates that TCM industry is in a period of scale expanding，service quality improving and external trade growing.However，it also exposed many problems，like imperfect Traditional Chinese Medicine intellectual property institution，unsystematic monitoring and control，low additional value of innovative products，and unreasonable external trading structure.And finally，it analyzed and forecasted the future developing tendency of Traditional Chinese Medicine in China.