Industrial biotechnology is an integrated technology that utilizes biochemical reactions and biofunctions to achieve substance synthesis and energy conversion. The development of industrial biotechnology supports a green, efficient, and new route for manufacturing of chemicals using renewable raw materials. It is expected to bring a fundamental shift in industrial manufacturing and a change in economic growth mode. Industrial biotechnology is an important strategic technology supporting the sustainable development of social economy and has become a focus of global competition on science and technology. Based on an elaboration of industrial biotechnology’s deep integration in bioeconomy, this paper summarized the current situation and developmental trends of industrial biotechnology and biomanufacturing industry in China. Gaps between developed countries and China as well as key areas for biotechnology development were proposed, followed by identifying tasks and directions for future development of biomanufacturing industry.