China is one of the most attractive wine markets and a hopeful wine producer in the 21st century. Current studies of wine in China tend to focus on the wine market but seldom analyze the domestic wine industry which contributes approximately 80% of the total wine consumed in the country while Westerners know little of it. This paper analyzes the current situation and the perspectives of the wine industry in China considering both traditional conditions such as wine history, wine policies as well as recent conditions such as e- commerce, climate change and domestic economy trend. We conduct a “SWOT” of the Chinese wine industry considering four sectors (producing, processing, selling and consuming) and use a SWOT Matrix analysis. Then we provide strategies for the development of the Chinese industry from governmental level, industrial level and enterprises level.