(I) The Three Basic Component Factors of Industrialzation andTheir Interaction
The continuously expanding market space， the increasingly enhanced technological potentialand accumulation of physical capital， as well as the continuously increasing participation rate ofcapital， especially human capital， are the three basic component factors of industrialization. Thesethree factors interact with each other， continuously improve， and work together to drive the continu-ous development of industrialization.
Industrialization is a process by which the market space continuously expands， and the domes-tic consumption and investment market continuously expands and structurally upgrades. It is also aprocess by which related countries are deeply involved in international division of labor and obtain agrowing international market share against a background of deepening economic globalization.
Industrialization is a process marked by technological progress， the release of technological po-tential， and a continuous increase of productivity. It is a process by which people continuously createnew products and new technologies through the exploration of new fields of knowledge and expertise，to realize upgrades in industrial potential. Through innovation and the adoption of new technologies，the quality of material capital and human capital is improved， resulting in a continuous increase inproductivity.
Industrialization is also a process marked by a gradually narrowing of rural-urban gap， a gradu-al increase in the participation of human capital， and continuous growth of income. During thisprocess， the relative size of modern economic sectors continues to increase while the percentage oftraditional sectors is gradually reduced， as they are reformed and upgraded on the basis of moderntechnologies and production methods. With the increased production level across the society， bothdepth and breadth of human capital participation are increased， the compensation level of workersand the income level of other production elements are also correspondingly raised， driving the ex-pansion of the size of the consumption market.
Successful industrialization must strike a balance among above-mentioned three component fac-tors. First of all， market capacity must match the size of dominant technology industries. A signifi-cant feature of industrialization is the use of economies of scale， including production economies ofscale and market economies of scale. If the market's capacity is insufficient to support economies ofscale brought about by industrial and technological development， a market gap will exist. Secondly，the quantity， and more importantly， the quality of human capital must be improved to match moreadvanced technologies. As industrialization moves forward， modern sectors making use of new tech-nologies emerge one after another， and traditional sectors are reformed and improved through theadoption of new technologies. With the gradual application and adoption of new production styles andmanagement methods， the quantity and quality of human capital must meet the requirements of tech-nological progress and changes in production style， or there will be a shortage in the supply of hu-man capital. Finally， income growth must match the expansion of market demand.
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