The article briefly reviews the development and progress in China ´s Shipbuilding Industry over the past 18 years, and the main reasons that the international competitive edge in China ,s shipyards declined in recent years has been pointed out： a. The traditional management mode does not fit the large extent incremental production situation, b. No enough strength on production pre-research and developing, c. Computer integrated technology has not been effectively used in shipyards, d. Be lack of experienced scientific and technical and managerial personals.

In order to narrow the gap with the world advanced shipyards and enhances the international competitive edge the article has put forward 4 proposals which can be referred to by the officials of large and medium shipyards： a. Transform shipbuilding production mode. b. Complete technical innovative system to strengthen the pre-research and developing of the shipbuilding products, c. Combine the transformation of production mode, steadily setup computer integration systems, d. Cultivate production management and designing per-sonel in line with the new shipbuilding production mode.