Abstract
The following "exposé" was written by Fei Hsiao-t'ung's assistants on his research trip to Kaihsienkung. In it they admit that a certain amount and kind of decentralization of industry and its location in rural areas may have advantages, but they point out that many other considerations must be weighed as well. They proceed to criticize Fei's model of "rural industry" on the basis of a number of more or less concrete points, and on the basis of his use of statistics. At a somewhat more theoretical level, they argue that Fei's major error was failing to pay proper attention in his original study to the importance of class differentiation and struggle.
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