Abstract:This paper deals with chiefly the policies and measures for handicraft adopted by both Beijing and Nanjing Governments during 1912-1937. According to it, the temporary industrial and commercial conference held in 1912 established the foundations for Beijing Government's handicraft policies, which gave an impetus to "Golden Times" of handicraft economy in 1920s. The proposal of the economic conference held in 1930 quickened the technology substitution in handicraft production and promoted the transformation of the handicraft into machine production. It argues that Nanjing Government's policies of handcraft remolding which were in agreement with the objective law of economic development, to a certain degree, stirred up handicraftsmen's enthusiasm for technological innovation, thus promoting the advancement of handicraft industry economy.