Abstract: This paper analyses the international competitive capability of Chinese silk industry with the methods of competitive advantage on the base of full and accurate data. The result has indicated that china’s silk industry international competitive capability had fallen sharply. The author thinks that there are several major factors infects our silk industry international competitive capability: (1) the quality of Chinese silk have great gap, comparing with the world’s most advanced level; (2) our administrant system can’t suit market-oriented economy, which have blocked our silk industry’s development; (3) the effective industry statutes haven’t have formulated all along and we didn’t add more importance to macroeconomic regulation; (4) our haven’t had any famous brand. Author think that we should pay more attention to the several step in hereinafter in order to improve our silk international competitive capability: (1) reform and straight out the administrant systems; (2) expedite the course of industry statutes formulating and strengthen the manager’s authority; (3) increase the input in the science and technology on silk ; (4) adjust industry composition and quicken the course of industry upgrade and technology get ahead ; (5) develop more domestic market ; (6) continue implement the strategy of high quality silk to enhance our silk brand’s popularity.