ABSTRACT

The non-state sector has grown rapidly, and China is experiencing dramatic changes in shares of output in the state and non-state sectors. This process of changing industrial structure by different forms of ownership (industrial ownership structure) is uneven among China's regions. Besides the role of the central state, regional disparity in ownership structure is heavily influenced by local states and development conditions, such as development experiences and local factors of production. While industrial restructuring, especially deindustrialization, has drawn considerable scholarly attention in developed countries (e.g., Bluestone and Harrison 1982), in China the composition and performance of industries under different ownership greatly influence industrial and regional growth. Regional changes of industrial ownership structure are significantly shaping China's regional development and will be examined in this chapter.