In this paper, we introduce the development status of China’s magnesium alloy material industry, analyze the main problems faced by its development in China and abroad, and prospect the future market demand in China for magnesium alloy materials such as high-performance rare earth–magnesium alloys with lightweight structures, magnesium alloys with high strength and high thermal conductivity, magnesium alloys with high strength and high electrical conductivity, and ultra-high-strength magnesium alloys.We also present a phased development plan for the industry toward 2030 and 2035 and propose relevant strategies for promoting the sustainable development of this industry in China. These strategies include promotion of independent innovation capabilities, optimization in resource allocation, strengthening of corporate cooperation, establishment of a complete research system for magnesium alloy materials, and improvement in platform construction. To satisfy the demand for the advanced magnesium alloy materials by national economy, national major projects, and social sustainable development, China should optimize its scientific research system, optimize the industrial development pattern, create high-quality and efficient industries, improve relevant policy systems, and build a sophisticatedtalent system.