ANBOUND think tank scholars believe that China should acknowledge the importance of industrial chain and industrial cluster when it comes to upgrading and transforming manufacturing industry. Industrial upgrading should be driven by the market instead of the government. It is not wise for the government to excessively intervene industrial upgrading due to the interest on real estate. It has greater meaning to both national and local economy if the government pays more attention to the industrial chain and industrial cluster as well as preserve industrial ecosystem.