Any attempt to evaluate China's achievements in industrialization during the past four decades must confront three crucial issues. They are: first, to what extent industrial success was gained at the expense of slower agricultural growth as a result of the Soviet-style, forced industrialization strategy. Secondly, whether in view of the perceived need to narrow the gap between the under-developed interior and the more advanced coastal areas, Chinese leaders have succeeded in correcting regional imbalances in industrial production. Thirdly, whether advances in the modern industrial sector have benefited traditional, small-scale industries. This last question is an important one in the light of the experience of other industrialized countries, highlighting the “spill-over” effects of technical change from modern to traditional sectors.