With the continuous improvement of Chinese urban per capita national income, leisure and entertainment has become an important part of people's life, and the entertainment expenditures are accounting for an increasing proportion of total consumption. Movies, as a leisure project, has attracted more and more Chinese people' interest. At present, China is the second largest film market in the world, which is fast growing. According to the PWC's report in 2014, in 2018, Chinese film box office

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... nue will increase by 88%, from $31.3 billion in 2013 to $59 billion. It is suggesting that Chinese film industry has a bright prospect. This paper uses SCP paradigm of industrial organization theory to research China's film industry. We find that: Chinese film production market is a competitive market; the film issuing market is oligopolistic, type III market; and the film cinema market belongs to an oligopolistic, type IV market. At the same time, the film market behavior and market performance analysis shows that China's film market is in the stage of vigorous development. Finally, this paper proposes several suggestions for the development of China's film industry.