Abstract: This paper analyzes the three historical process of cotton purchasing and marketing system of Xinjiang Production and Construction Corps (XPCG), which is the stage of state monopoly for purchasing and marketing (1954- 1998), the stage of dual- track system (1999- 2005), and the stage of order acquisition and unified marketing (2006 - present). This article thinks that there exist many problems in the XPCG's cotton industry chain, such as the uncoordinated benefit distribution between purchasing and marketing subjects, and the fluctuation on production and cotton price;the paper also finds that the main reasons for which are unequal and conflicted rights and responsibility, the strong administrative interference, lack of supervision, and impeded information communication. Therefore, it is necessary to reform the existing purchasing and marketing system, to strengthen performance appraisal as well as to strengthen information communication and trust, to extent the cotton industrial chain, to increase the financial support, to establish a reasonable and efficient new system for purchase and marketing with equal rights and responsibility