As an important form of agricultural industrialization in China, facility agriculture industry has been greatly developed in recent years, but due to fierce market competition, facility agriculture industry is suffering low effectiveness. Taking Yanqing County, Beijing as an example, supported by industrial organization theory, the paper attempts to make a thorough analysis of Yanqing facility agriculture industry by using SCP paradigm, the result shows that industry operation is troubled by two dilemmas: Scale dilemma and prisoner’s dilemma, and the solution to free the industry from the difficulties is government policies. Based on the conclusion of the analysis, the paper adjusted the traditional SCP paradigm, highlighted the importance of government policies, and made some suggestions for the formulating facility agriculture industrial policies.