Industrial policy is one of the focal points of WTO reform. The members increased industrial policies after international financial crisis 2008 and the trends are equally important within the COVID-19 pandemic recently. These selective or functional industrial policies are characterized by modernization and complexity, but developed and developing WTO members have different perceptions and understandings of industrial policies under the framework of the multilateral trading system. The United States, Europe and Japan advocate restricting the industrial policies that distort the market economy in the process of WTO reform. This paper holds that China can advocate a comprehensive industrial policy for the future of WTO reform, adhere to the“function theory”to provide a theoretical basis for the discussion of industrial policy issues, carry out a panoramic industrial policy discussion in order to achieve a balance point of interest negotiation of industrial policies and industrial subsidies issues among agriculture, manufacturing and service industry, and stick to the principle of market economy to deal with the industrial policies under the WTO framework. The WTO reform may offer acceptable comfortable space among all WTO members on the grounds that the industrial policies should be allowed to provide universal incentives for infant industries, and formulate trial and error mechanisms and built-in sunset clauses. It is believed that the members may turn the negotiation of industrial subsidies from narrow scope into broad one for the purpose of satisfying the requirements of the new industrial revolution, constantly updating the multilateral trade rulebooks, and balancing the industrial policy demands at different stages of development within the WTO reform.