Abstract: There was some deviation in the cognition of culture and economy for CPC due to the long-term influence of left thoughts since new China was founded. Emergence of culture politic tendency was once affecting the healthy development of China’s culture economy. Since reform and opening-up, central government and state council have set about reform of the culture economy policy, vigorously cultivating the socialist cultural goods market. State council issued a formal notion of “culture economy policy” in 1991, promoting a rapid development of culture economy. The central government promoted the notion of “culture industry” during the 15th Session of 5th Plenary Session of CPC and cleared up the social attribute and economical attribute of culture. Then central government unveiled a series of policy and measures to promote the culture industry development, laying foundation for China’s culture industry development. Particularly, the strategy of “culture state” was made during the 7th Session of 6th Plenary Session of CPC and 18th Session, giving direction for the great development and big boom of China’s culture industry.