Abstract: The article explains the role and future trend of IT industry, and states that information technology represented by the internet and computers has brought about the third industrial revolution in history. An important impetus for economic growth in modern times, the IT industry has greatly promoted sustainable development and is profoundly changing mankind’s way of life and production. In discussing the development trend of world IT industry, the article suggests that with potential new breakthroughs in IT technology, the trend of agglomeration and integration of industries has become increasingly obvious, competition of intellectual properties and strandards is intensifying and ubiquitous networks is taking shape. It points out that China should bring into better play the role of IT industry as an “amplifier” in economic growth, a “transformer” in development mode and a “propeller” in industrial upgrading. It is important to follow a policy that emphasizes indepandent innovation, marketdriven approach, open and compatible technologies, integrated and comprehensive application, and serving both military and civil purposes, so that a quantum leap of IT industry will be achieved. China should advance industrialization with IT technologles and promote the IT industry in the course of industrialization in an effort to build an IT industry with Chinese characteristics. Greater efforts should be made to develop such core sectors as microelectronics, computer, software, key components and materials, as well as sectors with international competitiveness, including broadband mobile communication, nextgeneration network and information services. Continued improvement should be made in the policies guiding the development of IT industry with a view to making China a country with a strong IT industry by 2020.