This paper uses panel data from 31 Chinese provinces over the period 1970-2018 and 15 former Soviet Union (FSU) countries over the period 1991-2018 to compare the changes in industrial structure between China and FSU countries after each transition. The estimation results confirm that the inverse U-shaped relationship between the output and employment share in the secondary sector and the country income level in Chinese provinces (U-shaped relationship in FSU countries), which supports the three-sector hypothesis and de-industrialisation model. In addition, empirical evidence indicates that sector-specific productivity is an important factor in the sector’s share of production and employment.

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