During the development of Chinese medicine industry in China

unscientific disposal of waste puts pressure on both environment and resources.However

enterprises are lack of drive to reuse waste as resources.In new normal state it is urgent to accelerate the strategic adjustment of the economic structure

while new structural economics provides a theory frame for restructuring and upgrading of economy and industry.From perspective of new structural economics

the authors analyze the production of waste in Chinese medicine industry

realistic significance of waste reuse as resources and the function of market and government on this matter.Chinese medicine industry belongs to strategic industry according to phase characteristics of industry development.The condition is put forward for enterprises to change waste into resources under market system.To encourage Chinese medicine enterprises to reuse waste as resources

the government should increase private return by financial subsidy and increase private cost by property right system to promote sustainable development of Chinese medicine industry.