Background Combining with the reality of Hainan free trade port, constructing Hainan TCM modern industrial system was the background of my research. My PhD research project was about cooperation between Hainan and Macao helping internationalization and modernization of Hainan TCM industry, which filled the research gap at present. Especially, one representative Li ethnic medicine. Objectives This project aimed to: (1) Study the present situation of the first, second and third production chain of TCM industry in Hainan and Macao with sociological methods. (2) Analyze the TCM industry in Hainan with the SWOT(strengths, weaknesses, opportunities and threats) model of strategic management, giving countermeasures to the cooperation between Hainan and Macao. (3) Study one of the representative Li ethnic medicines, Cllicarpa Hook. et Arn. Methodology A qualitative sociological method was used in this research. The qualitative method includes policy research, field investigation and semi-structure interview. And in this research, SWOT model was one methodology of strategic management. Active sites and effective monomers were separated and identified by chemical, physical, chromatographic and spectral methods, and the active sites, effective monomers and their mechanism of action were determined by experimental pharmacology. Result 1. This project gave the present situation of the first, second and third chain of the TCM industry chain in Hainan and Macao, and put forward the corresponding opinions by the stakeholders. For example, cooperating with the State Key Laboratory of Quality Research in Chinese Medicine, at the University of Macau. Second, the output of this research will be valuable for the policymakers in the related field to consider the countermeasures in this sector. Especially, accelerating implementation of traditional Chinese medicine registration law in Macao and "application of clinical real world data". Third, this study demonstrated the significant anti-cervicitis effect of the ethanol extract of C. nudiflora at the animal level, found the most significant effect of the petroleum ether extract (CNE-p) for the first time and its mechanism of action. Conclusion This project provided a comprehensive view of the Hainan TCM industry. Progress in realizing the modernization of the Hainan TCM industry was described. Keywords Traditional Chinese Medicine (TCM), Industrialization, Internationalization, Modernization, Hainan, Macao, Sociology, Callicarpa Nudiflora.