By using deviation-share analysis to analyze manufacturing industry development situation of Chongqing, China, three municipalities and Guangdong Province from 1989 to 2000, the results show that total manufacturing ability of Chongqing is not strong and its development level and scale is lower than average national level. The reason is that optimization of structure is not higher, which is the basic reason to determine manufacturing industry development situation of Chongqing. Poor competition is the key factor to cause poor total manufacturing ability. Based on industry comparison of deviation share volume of manufacturing industry, manufacturing industry of Chongqing has 5/7 industry competence to lead partial industries of six provinces such as Beijing, Guangdong and so on.