Abstract: De-industrialization is an economic phenomenon that a country has to face when its economy develops to a certain extent. Different de-industrialization pattern would produce different effects on a country’s economy. A negative consequence resulted from the total de-industrialization is the industrial hollowing, which is a problem many developed countries are faced with in the process of economic development; while structural de-industrialization can better preserve the power sources of a country’s manufacturing sector and its economic growth. China is now about to enter the period of de-industrialization phase, its manufacturing industry is faced with rising costs, demographic dividend disappearing, rising exchange rate, competition from Southeast Asian countries and other unfavorable factors, while the re-industrialization behaviors of the developed countries also constitute a great challenge to China’s manufacturing industry. The structural de-industrialization is a pattern that China should adopt.

Key words: de-industrialization; economic development; industrial structure upgrading