After the "Cultural Revolution" in 1976, the Chinese film industry returned to normal. Between 1976 and 1979, most filmmakers returned to their film studios and began to reorganize the production system. After 1980, the Chinese film industry began to develop multi-dimensionally. The highlight of this development was the rising of a large number of young directors and their works, which became hits and attracted attention both at home and abroad. More and more Chinese films were seen at international film festivals, often winning the awards. This study focuses on the important period between 1976 and 1988 in the Chinese film history and its influence on the development of the Chinese film industry; it concludes with the discussion of the direction the Chinese film industry is heading in the future.