Chinese textile and apparel industry has sunk into survival and development difficulties after the international financial crisis, and this industry has to transform and upgrade. This author believes that manyenterprises haven’t the ability and motive of transformation and upgrading under imperfect systems and mechanisms. Industry transition and upgrading depend on many changes, for example, development model,business model, market strategy, resource utilization model, technique innovation model, environmental protection model and government supporting model, etc. It is important that the government perfect the systems and mechanisms to strengthen the guiding and supporting functions.