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China has become the world largest manufacturing country following the same type of industrial policy as the Asian newly industrialized countries. China’s success modifies the structure and dynamics of the world industry, representing both a major challenge for the industrialization of developing countries and an opportunity for their development. While most analyses of the consequences of the rise of China focus on its impact on trade, this article examines the consequences of China’s growth on manufacturing industry in developing and emerging countries based on the global industrial restructuring. It shows that China’s industrial growth increases the differentiation between developing countries with regard to the structure of production and the divergence in their development paths.