Abstract: Jewelry industry is one of the fastest growing industry in China. More and more people begin to love jewelry, collect jewelry and invest in jewelry. The demand for jewelry is becoming higher and higher. It is necessary to study on development trend of China's jewelry industry. Firstly, this paper described the development course and the spatial distribution of China's jewelry industry. Then, this paper analyzed the competition pattern of China's jewelry industry. The results show that China's jewelry industry grows quickly and it has remarkable tendency of industrial agglomeration and the brand competition is intense. However, the development of China's jewelry industry has many shortcomings. There are much room for improvement. Finally, it is pointed out the problems during the development of China's jewelry industry and the corresponding counter measures to promote the healthy and orderly development of China's jewelry industry.