Abstract: Industrial policy is an important starting point and guarantee for promoting the construction of a modern industrial system. Under the new development pattern, China’s industrial policy is faced with the new requirement to accelerate the transformation. It calls for not only getting rid of the dependence on the traditional path, but also giving full play to the advantages of the market in organizational resources. It is also necessary to gain the initiative in international development under the great changes, and to coordinate the interests of different subjects, stimulate development potential, and promote China’s industry to achieve a high level of self-reliance. However, the path dependence under the traditional development mode, the limited capacity of the main body in international industrial competition, and the impact of great power competition on resources and market players have formed constraints on the transformation of China’s industrial policy. This paper points out that in the future, China should systematically grasp the needs of industrial development, give full play to the role of competition policy on industrial independent innovation design industrial policies with the goal of improving the competitiveness of the industrial chain and give full play to the role of industrial policies in creating markets. Thus, it would improve the precision of policy implementation, mobilize the enthusiasm of advanced production factors and subjects, and create an institutional environment that is conducive to the transformation of industry from catch-up development to leading development.