Abstract: Chinese military industrial enterprises have experienced the development process of concentration on military industrial enterprises, combination between military and civil industrial enterprises, separation of civil and military industrial enterprises and integration of civil and military industrial enterprises. During this process, plentiful technology and human resources have been accumulated, which greatly contributed to national defense construction and economic development. Influenced by the perception that military industrial enterprise is much more important than civil industrial enterprise, however, the military industrial enterprise needs to improve its market-based operational mechanism, management model, civil industrialization and product development, market expansion and talent cultivation. According to the reengineering theory, based on insisting military industrial enterprise's missions and features as well as the principles of strategic industries guided by techniques and developing emerging industries, by means of the combination mechanism between military and civil industrial enterprises and local government guidance and coordination mechanism, the military industrial enterprise needs to change its industry management concept, enterprise organization management mode, and focuses on local economic development, proactively coordinates and communicates with the local governments so as to reach a sustainable development of military industrial enterprise.