The intention of this paper is to analyze this phenomenon from the development, characteristics, drivers and problems of industrial clusters in the province of Zhejing, China by comparing two clusters: Datang hosiery cluster and Sassuolo ceramic tiles cluster--which is a prototype of successful industrial cluster from developed country. This comparative method helps understand that in many ways, the Zhejiang districts appear to have many similarities with the development observed in the 3rd Italy; however, we can distinguish the features and dissimilarities between these two types of clusters – the very structure factors that render the clusters highly specific. Finally, this paper will also point out some server problems of Chinese industrial cluster, which all will be helpful for us to know the situation of China SME industrial clusters. Further more, this study is carried on finally to explore the problem resolution of the clusters in pursuit of sustainable competitive advantages in order to cope with the dual challenge of knowledge creation/innovation and globalization.