This paper uses the theory of predomi nance of late -comer to analyze Chinese IT industry.The author holds that the key to Chinese IT industry leap is dependent on human resour ce and capital which helps make breakthroughs on some domains,consequently keep advancing IT industry.To reach such an end,the system of investing and financing,should be r eformed.Efforts should be made to build business incubators for high tech.enterprises,and attach importance to human capital development.