The development of the forestry economy cannot be isolated from the domestic and international market. In order to study the development strategy of forestry economy, firstly we should understand the changing situation both home and abroad. Secondly, the importance of further study on international and domestic forest industry should be attached equally. Development strategy of forestry economy in China is based on the tendency of international forestry development. Under this background, the research on development strategy of forestry economy in Shanxi Province, which is the main contents of this study, is undergoing. Based on this acknowledgement, First and Second Charter of this dissertation focus on relative theories of regional economy development and forestry development. At the meantime, the author analyses the natural, social, economic conditions and gets the conclusion that the economy development in Shanxi Province should pay more attention on building ecosystem environment. Forestry development of Shanxi Province not only has close relation with economy development and environment improvement of Shanxi Province, but also impacts nation's biological security especially in Beijing city. According objective analysis on forestry development in history and in present, advantaging and disadvantaging factors for forestry development, the author points out a general target of forestry development in Shanxi Province and also designs the development of classified forest in the near future. At the meantime, the author lists the priority of strategy of forestry economy in Shanxi Province. Finally the author indicates several specific measures to fulfill strategy mentioned above such as change the mind, further the reform, strengthen the legal system, utilize proper technology, enhance the management, open to foreign countries and so on. All of those consist the whole development strategy of forestry economy in Shanxi Province, and only when those aspects be given enough emphasis from up and down and performed effectively, will make the forestry development success in future.