Abstract: In China, the line pepper (Capsicum annuum L. var. acuminatum), as an important type of drying pepper, was planted about 433000hm2 per year. This pepper not only meets the domestic consumers but also has a strong competition in international market. After joining the WTO, the line pepper industry of China will face several challenges, e.g. the increasing of residual because of pollution in old growing area and the "green trade barrier", the more demands of production and market to variety improvement, the development of line pepper production in other developing countries etc. In accordance with these challenges, strengthening study on the variety improvement, breeding methods, comprehensive production techniques, and processing techniques, adjusting relative agricultural policy and increasing the "green trade subsidy" according to the trade regulation of WTO will promote the continuous development of Chinese line pepper industry and keep the advantage of this industry in international market.