This paper combs thedevelopmentof theories combinedthepracticeandconnotationof intra-industrytrade. Accordingtothis paper，theobject of studyontraditional intra-industrytradetheoryis based onfinal products producedby countries，especiallythedevelopedanddevelopingcountries whichutilize fully the comparative advantage of factor endowments.With the 1990s' in-depth international direct investment，multinational companies dominate the global realization of the resources in the various stagesofproductionprocesses intheoptimalconfiguration，andintra-industrytradetheoryfocuses onthe intermediateproducts.Oneof China's majortradepatterns ofprocessinginvolves inglobalcompetition.