As a typical continental country with wide range of economical connection and business relationship, China needs a strong transportation form to connect the whole country and the national economy while directing and promoting the development of other transportation forms. With the most notable characteristic such as heavy cargo, lower cost and less power consumption, railway does not only enjoying the definite advantage in high-volume people/freight transportation of medium and long distance, but also is the most suitable key transportation form given Chinese economical and geological character and national income.Currently China railway ranks 1st in transportation intension and is known as the most busy railway in the word since it completes24% cargo load of the world with 6% operation distance. The railway provides strong transportation support for rapid development of national economy and sets firm material basis for the fast improvement of logistic industry in China. However, along with the continuous improvement in transportation quality and quantity since 1990s, there is huge change in transportation structure in China. Highway and airway industries develop so quickly that the market share of railway transportation is beaten severely although the latter had been keeping the main force in China's freight market. The traditional operation idea and management model of the railway industry meet hard challenge in severe marketing competition. As resources and environment conditions restrict economic development in more aspects as well as the conflict between limited resource and business requirement became more and more notable, railway industry meets new pressure in the energy and raw materials transportation.Meanwhile, China announced China's railway plan in the 11th five years in the late Oct, 2006. In the plan, China projects to build more than 90000- kilometer long railways, among which 45% are compound and electric. Besides, China plans to build more than 20000- kilometer long fast-speed railways and 35000- kilometer long railways in Western China so as to achieve the freight load of 180 million tons of coals and form the national-size container transportation system. All these will build the solid foundation for the energetic development of China's railway freight transportation. This thesis focuses on the research for new trend of China's railway freight transportation and provides suitable advices for it on the basis of the description and analysis of current status and developing trend in this industry. The purpose is to have the railway make a key role in national economy development and strengthen the main-force position of railway in China's complicated transportation networks. This thesis comprises five parts.Chapter 1, the general introduction, mainly puts forward the background, scope and methodology of the research as well as sets up the whole framework of the thesis.Chapter 2 focuses on the introduction of the basic situation of China's railway freight industry. Firstly, the chapter has a view on the current status of railway industry, including the network construction, technical equipment, management system and the position of railway within Chinese complicated transportation system. Secondly, it analyses the necessity and the achievement in developing modern logistics in China's railway freight industry.Then we go to Chapter 3 and chapter 4, the key parts in the thesis.Applying the strategic analytical method of SWOT, chapter 3 points out the main strength and weakness internally as well as the important opportunity and challenges externally for China's railway freight transportation. And then it makes the scientific valuation on how to form and choose the suitable development strategy. Chapter 4 puts forward the development strategy of China's railway freight transportation. On the one hand, the railway infrastructure, including the construction of railway network, container transportation system, information system and electronic business, must be improved and popularized. On the other hand, the action should be taken in management system such as dividing railway network from operation, introducing the competition mechanism, improving related legislation and bringing up the talents. Furthermore the reform of transportation system should be made to develop the multi-model transportation, location logistics centralization and the third-party logistics. The conclusion is drawn in chapter 5 after the process of digging out in the previous parts. Chinese government should aggressively invest in the construction of railway networks, especially those in Western China and other areas with ample natural recourses. Meanwhile emphasis should also be put on the development of the container transportation and multi-modal transportation so that railway freight transpiration will play the key role in China's complicated transportation system.