State and problems of modernization of industry in China

This paper presents an overview of the Chinese industry development industry over the past twenty years. It is shown that on the power and industrial output, China is on the same level with the flagships of the world economy. Most important factor in its economy is industrialization, which is regarded in China as one of the areas of modernization. The analysis showed that manufacturing capacity can produce major industrial products in the amounts almost entirely matching the needs of the country. At the same time, a low technical level of China's industrial production is seen. An assessment of the industrial modernization state in the dynamics of labour productivity and the industrial structure as well as the impact on the environment is made. An expert assessment found that modernization of China's industry will be completed in about 2040s, but the modernization of industry can create new problems. Among such problems, the following are marked: search for a path to modernization of industry, forming a model of technical delivery based on independent innovational activity, search for lasting and sustainable development of the Chinese industry, ensuring a balanced development of capital-and labour-intensive industries, timely reconstruction of the enterprises, elimination of excessive capacity, rational combination between the national industry modernization rate and the internationalization of production.