Japan's industrial policy has always been recognized and recommended by scholars in many countries. The truth is Japanese industrial policy is not perfect. For example, from 1960 to 1973, the Japanese government actively promoted the transition from agriculture industry to manufacturing, and restricted the private sectors. Car manufacturers were manage to withstand the policy's pressures, and finally resulted in the competitive car manufacturing industry. In addition, although the Government focused on R & D (research and development), the governmental provided insufficient input; Japan's technological progress in the 80's should be attributed more to the private sectors’ investments in R&D. Anbound research team believes that compares with the advantages and disadvantages of the Japanese industrial policy, the Chinese government should play the role of providing guidance in the industry sector rather than direct intervention. Industrial development should be depending on the businesses and the market.