The Chinese manufacturing industry development have made remarkable achievements. Now it is on the key stage facing transformation, upgrading and special opportunity. However, there are structural and institutional obstacles and imperfect policies, adverse to the transformation from big to powerful manufacturing industry, so it is urgent to conduct the system and mechanism reform and policy adjustment. The reform of the system of manufacturing industry should take the new industrialization as the lead, persist the market direction, and release the activity of labor, knowledge, technology, management and capital of the manufacturing field. Learning the experience and enlightenment from the developed counties, the whole policy system, including the market competition, fiscal, financial and tax, innovation, talent, small and medium-sized enterprises, and opening to the outside world policies, should be further improved, in order to create a good market environment and institutional environment for the development of manufacturing industry.