Abstract: We briefly reviewed the course of oriental tobacco production both in China and in Baoshan, Yunan province. By analysis on international and China oriental production and market, we examine the pro and con of Baoshan oriental tobacco development in term of natural resource, market, quality, technology, policy, RMB exchange rate, labor force, infrastructure and processing. Then we suggest that we should change developing way, achieve industrial economy growth, expedite new tobacco growing areas development, stimulate rapid development of tobacco production, increase modern tobacco agriculture construction, improve tobacco production, strengthen infrastructure construction, and increase industry management level.