Although significant progress in Chinas natural gas industry has been made since the adoption of the "Eighth Five-Year Plan"(from 1991 to 1995), some problems still exist in the aspects of gas resources, exploitation, utilization and macromanagement, and hinder a further development of the natural gas industry. A series of strategies for solving the problems was put forward, including accurate orientation of the natural gas industry, strengthening the construction of gas transmission and distribution networks, comprehensive exploitation policies for "integration of up-and-downstream",government-supported gas-preferential policies, construction of the gas market frameworks and devoting strong effort to the new market development.