Abstract:This paper put the research and development input index, financial index and assets structure index into the evaluation system, and used the fuzzy comprehensive evaluation to distinguish the advanced manufacturing industry of China from the normal one. Based on the distinction, this paper found out that there were the dual restrictions of falling demand and rising cost in the advanced manufacturing industry of China when analyzing the external environment via the measure of demand and cost of the advanced manufacturing industry of China based on the empirical data of the manufacturing industry of China. At last, this paper came up with some advisable suggestions that could help the advanced manufacturing industry of China to get a better development.