ABSTRACT
This chapter studies the spatial distribution of China’s industry and cities. It investigates the coordination issue between China’s industry and urban development. Historical comparisons on location of two-digit manufacturing industries and location of cities suggest there has been agglomeration of industries and cities in the same regions following the economic reform. However, empirical evidence indicates that development of rural industry may have stunted China’s urban development. To further coordinate urban and industry development, the development of large and medium sized cities for promoting the formation of new special-large and super-large cities seems desirable. In addition, the development of satellite cities and transportation hubs would be helpful for the economic development of middle and western China.
