Abstract: With the further deepening of reform and opening up and market economy, the production and trade of traditional Chinese medicine also have broad economic prospects. The rural economy needs a new source of power, and the traditional Chinese medicine economy provides a strong power for it, but there are still some problems in the development, which affect the healthy development of the industry. This paper summarizes the development status of Chinese herbal medicine in China, points out many problems existing in Chinese herbal medicine industry, and puts forward effective strategies, so as to provide reference for promoting the vigorous development of Chinese herbal medicine industry.