Abstract: With the change of economy and environment, the strategy of traditional industry of machinery and equipment (IME) in the western areas of China needs to be reviewed and reevaluated. Based on the "diamond model", the author studies the present situation of traditional IME in the western area of China and points out the advantages and the disadvantages to the further development. Then it is clarified that the key to the development of IME is to strengthen the competitive advantage of western enterprises,espec...