One of the most critical issues in the sphere of international politics after the Cold-War era is the problems surrounding the questions of national identities. After the Cold-War, the world is undergoing the simultaneous trends of globalization and regionalization. No ethnic nations can avoid such a trend that constitutes grand currents of our era. In point of view of ethnic nations, however, the trend of globalization and regionalization poses the important question of national identities to each nation, that is, the possibility that above trends might jeopardize the cultural safety of ethnic nations. Since the beginning of the reform, China had to encounter the issue as well, and to safe-guard and insure the nation's cultural security, endeavored to establish socialist culture with Chinese characteristics. In practice, such an endeavor embodied themselves in the realms of cultural projects and cultural industry. At the same time, the menace that entails the spread and prevalence of Western culture threatens the construction and stable development of national cultural foundations and cultural economy.In September, 2000, 5th Plenum of 15th CCP Central Committee endorsed Resolution of CCP Central Committee concerning l(f 5 year plan which suggested: "improve cultural industry policy, strengthen the establishment and management of culture market, promote development of relevant industry", and "promote combination of cultural industry and information industry." In March, 2001, this suggestion has been approved by the 4th plenum of 9th Peoples' Congress and officially brought into the outline of the National 10' 5 year plan. Thus, the concept of 'cultural industry', for the first time, has been officially recognized in document of national policy and law. The developing of cultural industry has become to constitute one of the important elements of strategy for national economic development and social improvement. It symbolizes the rapid rise of cultural industry in China.The backgrounds for the erection of important policies in cultural industry constitute of two factors-domestic and international factors. Domestic factor indicate that through over 20 years of reform, rapid growth of the economy, strengtheningof overall national power, and enhancement of peoples' living conditions have contributed to the higher requirements for the cultural life. Developing cultural industry vigorously has become important means to enhance the essence of China's elegant traditional culture, and satisfy and adapt to the increasing requirement of people in terms of material and cultural life, as well as promote socialist material and cultural civilization. These facts press for the rapid development of the industry to constitute one of the core industries of national economic and urban construction. International factor indicate that since the reform, increasing levels of cultural interflow and cultural globalization has led to the rise of cultural despotism in the realm of international politics, threatening the cultural security of nations. The participation in WTO will lead to the acceleration of colonial invasion from cultural industry of developed Western countries, U.S. as its spearhead.Cultural industry is one of sun-rise, core industry that has great influence on the development of nation's economy. At the same time, in the realm of international relations, it plays the role of protecting and promoting the national culture. In establishing national cultural industry policy, therefore, it is very important to keep in mind the important role the industry plays in development of national economy and securing cultural independence. Cultural policy comprises the basis for the development of cultural industry, and the former is constructed on the deep foundations of cultural theory.The ideology and theory relevant to culture by China's prominent leaders-Mao's "idea of national, scientific, and peoples' new democratic culture", Deng's "idea of simultaneously catching socialist material and cultural civilization", and