An ancient Chinese capital, Xi’an became a major industrial city only after 1949. During the periods of the First Five-Year Plan (1953-1957) and the Third Front Construction (sanxian jianshe) (1965-1971), Xi’an received a tremendous amount of investment from the state and built seven major industrial districts-Electric Machinery City (Diangong cheng; EMC hereafter) in the west, Textile City in the east, Sanqiao Industrial District in the northwest, West Suburb Industrial District, Northeast Suburb Industrial District, Hujiamiao Industrial District in the northeast, and Hansenzhai Machinery Industrial District in the east (Figure 9.1). After the 1978 economic reforms, Xi’an’s state-owned industries, such as textile, machinery and other state-owned enterprises (SOEs), experienced a serious decline. In 2001, the share of SOEs in the city’s total industrial output was only 48 percent, compared to more than 80 percent from 1957 to 1980. The decline of SOEs and the growth of high-tech industries and the tertiary sector after reforms have significantly changed the city’s industrial structure and urban space.