With the development of culture industry, it has become a new economic growth point, the situation becomes more obvious, and cultural trade in the transformation of economic development mode, adjusts the structure of national economy, plays an important role and gains recognition in a wider range. But judging from the international comparison, China's cultural trade competitiveness is still weak. Porter's diamond model theory is developed in this paper, the dynamic diamond model is put forward according to the stage of industrial development, and this model is applied to theoretical analysis and empirical study of cultural trade competitiveness, and relevant policy recommendations is put forward.