Abstract: The modern industrial system is the material and technological foundation for the construction of a socialist modernized country. To promote the construction of a modern industrial system, it is necessary to ensure the fundamental role of competition policy. Scientific competition policy is conducive to optimizing the construction of business environment and promoting the construction of integrated modern industrial system, promoting the construction of progressiveness modern industrial system through fair competition and incentive innovation, promoting the construction of safe modern industrial system in coordination with industrial policies, and is also of great significance in promoting the development of Chinese-style modernization. Currently, China's competition policy is facing obstacles in its implementation, which is not conducive to the construction of a modern industrial system. Those obstacles are: local protectionism resists and ignores the principle of prioritizing competition policy values, the traditional concept of competition policy undermines the universal applicability of competition policy, and the strong industrial policy constrains the independence and authority of competition policy. In order to strengthen the fundamental position of competition policy and better leverage its role in promoting the construction of a modern industrial system, it is proposed to further improve the fair competition review system and its supporting measures, update concepts and practices to enhance the applicability of competition policy in the digital economy field, and further promote the synergy between competition policy and industrial policy.