In this paper the authors described the theory and application of PTP method, which was recommended by FAO, and applied it to the measurement of fishing capacity of Chinese fishing fleet. The problems in application were explored and discussed and the improving advices were suggested. The authors proposed a new method, called "supplement peak year", and indicate that adopting engine power of fishing vessel as the input index is more appropriate for Chinese fisheries by means of the PTP method. Then this paper also pointed out that the PTP method is suitable for market economy.