ABSTRACT
The rates of growth and the pattern of development are analyzed on the basis of the 1933 net value-added index. Instead of looking at this subperiod as a whole, it would be better to center the chapter describes on specific events that took place during the years and their impact on the changing pattern of industrial production at the end of World War II. Data for other years during the period under investigation are extremely scanty, and, therefore, only a rough assessment of the problem of handicraft displacement can be attempted. The rapid expansion of the modern industrial sector was responsible only in part for the displacement of handicrafts; other economic and, more important, noneconomic factors must be examined more fully in order to explain the process of handicraft displacement in the Chinese economy.
