ABSTRACT
The Chinese government authorities' push for structural adjustment is a response to the need to strengthen international competitiveness. The low growth rate of energy resources such as coal and natural gas is a reflection of the severe difficulties China is facing in energy supply. Although China possesses some industries that are competitive from an international perspective, a major challenge in moving forward will be to strengthen competitiveness in new and high-tech industries. The chapter presents a ranking by primary industry of the proportion of primary, secondary, and tertiary industry in gross domestic product (GDP) at the province level. The reason for the rapid development of foreign-invested industrial enterprises and private industrial enterprises, and the stagnation of state-owned industrial enterprises, is the great disparity in labor productivity. Pillar industries comprise six separate industries: machinery, electronics, petrochemicals, automotive, construction and building materials, and light industry and textiles.
