Abstract: This paper demonstrates that internet economy will be the major economy in the future. Putting the economic and social attributes of jewelry in perspective, it analyses the characteristics of jewelry industry and elaberates the development and problems of China's jewelry industry at the present. On the full discussion of the possible effects of the internet on China's jewelry industry in the future, it raises the countermeasures which concentrate on our own resources and our own culture and develop the four-level markets.