Abstract
This chapter reviews the recent developments in industrial relocation across China's regions and the related response in the labor market, while examining characteristics of the Chinese economy and the applicability of prevailing economic theories relating to the issues concerned. It discusses a critical feature of the Chinese economy - namely, its large size, which serves as an important base in understanding the trends of industrial relocation in China. Based on that, the chapter further reveals the Chinese characteristic of dual economy development as it approaches the Lewis turning point. It attempts to unveil the actual reason behind the industrial relocation and its inconsistency with the existing labor allocation by raising and empirically answering the question of whether the current pattern of industrial development conforms to the alteration of comparative advantages among Chinese regions. Keywords:China; industrial relocation; Lewis
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