On the basis of the SCP model of industrial organization theory of Harvard School and on examining the situation of shipbuilding industry of China, the author finds that the structure of Chinese shipbuilding industry is an oligopoly one and is high level monopoly and finds that market appearance is meager and acquisition and reorganization under the govemmental encouragement and finds that its market performance and technology innovation are low. The necessary choice of China shipbuilding industry development is to lower industry barrier, to encourage civil capital into the industry, and to enlarge industrial scale management.