Abstract: Beginning in the mid-nineteenth century，China was forced to open up its domestic market. The dumping of foreign goods caused the decline of the traditional handicrafts. But in the village of Shicang in Southern Zhejiang province，the iron-making industry survived until the mid-twentieth century，despite facing serve competition from Western products. Based on historical documents such as account books，receipts，tax bills，other materials，this paper describes and analyzes the strategies of the native ironmakingindustry. These strategies included: 1. keeping the iron-sand washing as sideline occupation of farmers; 2. maintaining contacts with outside markets and 3. serving the regional market and producing iron pans and farming tools. The main reason for the survival of China’s traditional iron-making industry lies in China’s segregated regional market，which provided time and space for its self-adjustment．