Abstract: In China, the key point of economic development lies in the promotion of industr ial structure readjustment by means of developing its hi-tech and transforming traditional industries with the applicable technology. This paper, in the viewpo ints of market competition regulation and developmental relationship between ind ustries,analyzes the mechanism of selecting key technologies in industrial stru cture readjustment in terms of a game theory, and reveals some noteworthy aspect s in the process of structural readjustment.