In this paper, the characteristic of drought disaster in China is analyzed. It’s pointed out that droughts are major meteorological disasters in this area. The standards of drought grade for single station and area are defined by using the percentage of precipitation anomalies and drought index. In addition, the main drought events and their intensity (grades)are assessed in this area for recent 40years. Finally, assessment the model of area covered by drought, the area affected by drought and the economic losses of agriculture by drought is established according the drought index. The assessing results coincide with the facts in the main.