OBJECTIVE： To study the development status of TCM enterprises of Nantong city and provide suggestions， and to promote the sustainable development of TCM enterprises of Nantong city. METHODS： Taking Nantong city as an example， questionnaires were issued to 15 TCM enterprises in Nantong （including 4 TCM decoction piece enterprises， 11 TCM pharmaceutical preparation enterprises）. The statistical analysis was carried out in respects of scale structure， development （including economic development and staff） and development potential （by enterprise R&D funds and R&D personnel input intensity） of enterprises during 2013-2017. RESULTS & CONCLUSIONS： In terms of the scale and structure of the enterprise， there were no large-scale enterprises in Nantong city， only 3 medium-sized enterprises， 12 small enterprises； the overall scale of enterprises was small； the overall concentration of TCM enterprises was not high， in which the market structure of TCM decoction piece enterprises was oligopolistic， and the structure of preparation enterprises was competitive. The concentration of TCM decoction enterprises was higher than that of TCM preparation enterprises. In terms of economic development， the annual average GDP and profit growth rate are 14.98％ and 19.09％ from 2014 to 2017； the economic development situation was good， but the brand variety advantage was not developed fully. In terms of staff， employee’s education level was mainly college degree （34.01％） and the staff category was mainly salesperson （32.73％）. In terms of the company’s development potential， enterprise R&D funds and R&D personnel input intensity were in low levels （average 2.96％， 11.32％ in 5 years）， the number of patents （16 in 2013 vs. 17 in 2017） and innovative products （7 in 2013 vs. 12 in 2017） increases slowly， and only one had opened up overseas markets. In response to the issues， TCM enterprises of Nantong city or other areas should merge and reorganize appropriately to expand the scale of the industry and improve the market concentration； increase research funds and talented personnel investment， insist the protection and in novation of TCM. In addition， build a big data “healthy cloud” platform to break the traditional industrial chain； at the same time， seize the “Belt and Road” policy finance and taxation opportunities to promote overseas and develop markets to promote the sustainable development of TCM enterprise.