Regional industrialization in China : The basic metals sector 1

Metal smelting, although a relatively small sector in total industry, is nonetheless important as its products are intermediate goods in various other sectors. Using a wide variety of sources, in this chapter we aim, for the first time, to offer a prefectural-level overview of mainland China’s metal smelting between 1850 and 2000. The resulting database shows a move from the Southwest and the Northwest to the Eastern and the Northern parts of China between 1850 and 2000. We might tentatively attribute it to four factors. First, eastern China also had ore reserves but was, in addition, richer in human and physical capital, thus making it more attractive as a place to locate a metal smelting factory. Second, eastern China had a denser railway network, necessary for the transport of raw materials. Third, it hosted a bigger share of the total machinery and casting industries, which were the buyers of the products of the smelting industry. And fourth, it had better access to international import and export markets.