To analyze the general situation of chemical industry in China. The general chemical market of major products is comparatively oversupply. The development of chemical industry in China is from supply restriction to demand restriction. To predict the demand for major chemical products in 2010. The paper also discussed the develop priority and new technologies in key industries, e.g. petrochemical industry, fertilizer industry, coal chemical industry, chloro-alkyli industry, soda ash industry, pesticide industry, fine chemical industry etc, together with the restructure policies including regional restructures, industrial restructures and corporate restructures.