Abstract:There is positive correlation between labor extensive degree and export degree of China’s manufacturing industries for a long time, after reaching Lewis turning point (around 2004), however, with the rising of general workers wages, the performance of labor-intensive industries in the aspect of export is weakened. Based on the 2000-2008 China’s above-scale manufacturing firm data, we calculate the periodic change of the export quota and capital-intensive degree for manufacturing industry. The results show that after the 2004’s Lewis turning point, the export quota of manufacturing industries, especially labor-intensive industries, has been significantly declining, among which the manufacturing industries with higher labor cost are more shocked. Meanwhile, the manufacturing firms gradually use capital to replace labor to make industrial upgrade in order to respond the rising of labor cost. According to different characteristics of China’s regional economy development, eastern region should gradually develop high-end industries, middle area should further develop capital-intensive industries while accepting industrial transfer from the eastern region so as to realize industrial structure upgrading and regional coordinated development.