Abstract By the use of the input-output method of measuring the level of china’s participation in international vertical specialization, and taking the contribution rate of total factor productivity to the contribution rate of the industrial total production value as the measurement index of the development way of China’s industrial economy. From two aspects-the whole, sub-sectors, the paper made a case study on the impact of China’s participation in international vertical specialization and industrial structure change on the development way of China’s industrial economy from 2001 to 2013.The results of the quantitative illustrate that, in general, the relationship between vertical specialization and China’s industrial economic growth pattern transformation takes on an inverted “U” curve significantly. The initial stage of participation in vertical specialization can be beneficial to China’s industrial economic growth pattern transformation, but the deepening of participation in vertical specialization can also restrain China’s industrial economic growth pattern transformation.