This chapter examines the transition of the industrial structure of Shanghai through conducting a comparative analysis of the textile and machinery industries, which were the main industries in the municipality, based on the available statistical data. The textile industry was the core of the light industry that symbolized the development of Shanghai’s modern industry up to the Republican period. On the other hand, the machinery industry, which likewise developed before the establishment of the PRC, was a sector of heavy industry that received focused investment and experienced substantial growth due to the government’s “Heavy-industry-priority Strategy” during the planned economy period.