Chinese biopharmaceutical industry is developing rapidly; however, the amount of capital investment and the industry concentration is still low. In order to improve competitiveness of China’s biopharmaceutical industry, Chinese government issued a number of supporting policies, such as the release of the Twelfth Five-Year Plan for Biopharmaceutical Industry and the implementation of New Medical Reform. This paper summarized the current situation, a number of government support policies combining the influence of the New Medical Reform of China’s biopharmaceutical industry, and provided the suggestion that China should speed up industrial upgrading for biopharmaceutical industry, introduce the cooperation research and development mode between enterprises and universities, pay more attention to patents application and protection to achieve breakthroughs for the industrial competitiveness of China’s biopharmaceutical industry.