¡@After 2000, China started to research and to develop the ARJ21 Regional Jet and civil aviation industry, China put the civil aviation industry as the Emerging Industries of Strategic Importance and wished to drive the Chinese industrial structure upgrading. In addition, Chinese government is working on the constructions of regional aviation networks as well. Moreover Chinese government provides the subsidy policy to accelerate regional development and supply the basic aviation services. The regional aviation is the intersection of aviation industry and transport industry. It has great significance for China¡¦s political, economic and social development. ¡@This thesis is trying to explore the main significance to the regional aviation industry of China¡¦s politics, economy and society. Observing China¡¦s current difficulties, China faced by the development of the regional aviation industry. And this thesis will use the industrial policy as the main theory to analysis that when China facing those difficulties, the industrial policy can really help the government to solve those problems and reach the goals that Chinese government has expected. ¡@After research, China¡¦s domestic regional aviation market exists a market failure situation. Also, the civil aviation industry has to face the competition of the technical deficiencies and foreign manufacturers, both of them need the government¡¦s assistances. Actually, the government¡¦s role is much weaker, and can¡¦t really help airline industries to reduce deficit in a difficult environment, so the government needs to invest much more resources. ¡@However, Chinese regional aviation industrial policies are not really failed. Nowadays, the aviation industry has been totally changed, it reached not only the technical skills which China¡¦s government pursued, but also reached the goal that v upgraded the industrial structure. Therefore we can¡¦t arbitrary thinks that Chinese regional aviation industrial policies are failure, but it really shows the limitation of the policies. How to overcome the limitations of the industrial policies is the greatest challenge that Chinese government has to face for.