Abstract
News of industrialization in China contains two special features which indicate that Chinese efforts in this field differ significantly from those in many other developing countries. The first is the strong emphasis on local industries and the other is the importance given to small and medium enterprises. Local industries include all industrial branches not attached to the central industrial departments, and all industrial enterprises run by provinces, administrative regions, counties, people's communes or production brigades. A number of these industries are attached to schools and hospitals, but the majority are small or medium enterprises run by counties, people's communes or production brigades. In this report I shall deal mainly with these enterprises, only discussing those at higher levels in so far as they have important relations with the lower level enterprises.

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