Abstract: Aim To research the strategy about China receiving the challenge of knowledge economy.Methods The importance of developing information industry in economy and in promoting industry structure was analyzed and testified by a lot of facts and data. Results Five principles for giving priority to developing information industry were put forward. Information industry is the strategic industry and the fundamental industry in the knowledge economy era and plays an important role in China economy development. Conclusion To face to the challenge of knowledge economy, China must be based on Chinese current situations and make good use of all the active things to give priority to developing information industry.