Abstract: The authors evaluate competitive power change of China's banking industry before and after it entered WTO from five aspects including resources status, profitability, capacity of risk management, asset liquidity and sustainable development with the sampling of original data of China's four biggest commercial banks namely Industrial and Commercial Bank of China, Agriculture Bank of China, Bank of China and China Construction Bank as well as ten listed banks such as China Merchants Bank and China Minsheng Bank. Furthermore, the authors analyze different factors that have possibly caused competitive change of China's banking industry:further improvement in financial deepening; the improved regulatory system as a result of the reform of the financial system; distinct improvement in banking infrastructure; and a modern corporate governance structure which has been briefly established in state-owned commercial banks.