Abstract: First of all, the paper discusses the theoretical relationship of financial ability and industrial development. It is suggested that the financial ability is the basic requirement of industrial development, and is the comprehensive reflection of industrial competitiveness. Second, the status quo of the financial ability of Chinese timber industry is analyzed in such respects as internal financing, equity financing and debt financing. It is concluded that the financial ability of Chinese timber industry is weak. There are some problems in such respects as internal financing, equity financing and debt financing. Finally, aiming at existing problems, the paper puts forward relevant policy suggestions.