ABSTRACT

Industrial dynamics is an important manifestation of the potential power of reshaping industrial geography. Micro-level industrial dynamics, namely the entry, survival, and exit of firms, greatly shapes industrial geography in China. This chapter analyzes the temporal and spatial evolution of China’s industrial geography from a micro perspective. The chapter discusses that for different firms and industries, the government may intervene through different policies and institutions, thus affecting the industry and firm dynamics. As expected, industrial dynamics has brought significant social, economic, and environmental effects at the regional and industrial levels.