Principal composite analysis method is used to make evaluation on the competence of Chongqing equipment manufacturing industry, the results show that, compared with the consumable manufacturing sector, Chongqing equipment manufacturing sector development lags behind because of its low industrial structure level, the l ow s pecialized collaborati on level, the backward technology and the institutional environment unfitness . Under the background of radically changed development environment of equipment manufacturing industry, the way for the development of equipmentmanufacturing sector in Chongqing is to make efforts to make self - innovation, and to rapidly upgrade its industrial competence by specialized industrial clusters and elongati on of industrial chains .