Agricultural products processing is the process of manufacturing agricultural products into finished and semi-finished products. Food industry is the essential part of agricultural products processing. The overall technic level and the degree of modernization of food industry are important indicators of economic and social development as well as the level of civilization of a nationality, a country or a region. The strategic background, opportunities and challenges for development as well as the problems faced by Chinese food industry are analyzed in this paper and the development strategy of food industry in China is also proposed.