China has the most abundant wind energy resources in the world and has certain foundations in the wind power industry development. According to incomplete statistics, in 2007, there are about 159 wind-powered farms that are under construction. The installed wind-powered generator set achieved 4871 kilowatts; the total engine capacity is 10.3451 million kilowatts. The development situation of the wind power industry is good, and the prospects for further development are extremely broad. The wind farms in China will achieve 321 sets by 2010, the installed wind-powered generator set will reach 8436 kilowatts, and the total engine capacity will be 51.1553 million kilowatts; by 2020, the total engine capacity will, hopefully, reach 100 million kilowatts, which is approximately 3% of China's estimated power generation. China, at present, is in the heavy chemical industry stage of the industrialization intermediate stage; the electricity demand gap is big; high energy-consuming industries account for a high proportion of energy use;. and the energy is short, the environment pollution is serious, the national energy saving and pollution discharge reducing duty is heavy, so China must develop its wind power industry. However, there are problems in the development of China's wind power industry as follows: (I)the strategic position of the wind power industry is low; (2) the exploitation and utilization level of wind energy resources is lows (3) the development level of the wind power industry is low; (4) the localization level of high-capacity wind machines is low; (5) the technological content of wind power exploitation is low; (6) the exact assessment data of wind power resources are lacking; (7) the master plans for development of wind power resources and the wind power industry are lacking; and (8) the implementation regulations of the renewable energy law are lacking. Accordingly, the strategy for developing China's wind power industry is. as follows: compiling the master development plan for wind power resources and the wind power industry; constructing a standard database for the Chinese wind power industry; implementing diverse development patterns that combine grid-connected electricity with off-grid connected electricity; constructing five national industry bases and the corresponding non-charcoal, high energy-consuming industry bases in Bohai-Rim Region, Inner-Mongolia, Gansu, and Xinjiang Province, the Yangtze delta and the southeast coast areas to form some clusters of the wind power industry and wind power equipment manufacturers; implementing the strategy of developing the wind power industry by scientific and technological means; and establishing a wind power research centre by Chinese Academy of Science and an overseas research institute, such as the Holland Energy Research Center, setting up some pioneer parks of wind power industry; making some preferential policies to encourage the exploitation of wind power resources and the development of the wind power industry so that China can become the most powerful wind power producer instead of the most abundant wind energy resources country.