A reliable supply of energy is essential to maintain and to improve human being's living conditions. Compared to the conventional coal-fired approach, renewable energy (RE) helps to mitigate the impacts of greenhouse gas emissions to a large extent. As a newly developed sector with large resource potential and good commercial prospects, China's wind power industry is exceeding expectations. By 2008, installed capacity of wind power in China totaled over 12 GW, making China the fourth largest wind market in the world. However, China has to admit the gap with foreign leading countries, mainly in technical R&D for large-scale wind turbine generation units. This paper attempts to formulate an analytical model for studying and assessing factors that have significant impacts on the local industry. An improved dynamic Diamond Model is developed to help the international community to understand the status quo of the Chinese wind power industry. In order to build a stronger wind power industry. the elements identified in the model need to be strengthened. (C) 2009 Elsevier Ltd. All rights reserved.