Small-scale industries in rural areas in China are today an essential element of regional development programs. This monograph analyzes two main development strategies. One involves technology choices in a number of industrial sectors, most of which were initiated during the Great Leap Forward in the late fifties. The scaling down of modern large-scale technology through a product or quality choice, combined with changes in the manufacturing processes, is discussed at some length for nitrogen chemical fertilizer and cement.

The other approach is the integrated rural development strategy where a number of activities are integrated within or closely related to the commune system. This strategy includes industry as only one component of many instruments where improved public health, education, and improved agricultural technology contribute to achieving such policy objectives as increased employment and productivity.