In this paper we firstly review the developmental stages of the Chinese civil aviation industry since 1949 and the background history of the Chinese Civil Aviation Law of 1996. We secondly analyzed the main terms and conditions about the Chinese civil aviation law and pointed out several problematic issues in view of the development of the Chinese aviation industry. Current civil aviation law in China has been in effect for the last 12 years. In these periods, Chinese civil aviation industry has developed in a high speed and great changes have occurred in its market environments. Thus, some of the terms and conditions in current civil aviation law in China have become outdated and unsuitable for the current developmental stage of the Chinese civil aviation industry. Therefore, we proposed some directions of the future amending of the Chinese Civil Aviation Law.