Abstract：In the eight years during the Anti-Japan War,Chinese economy and society underwent serious adversity and hardships.Focusing on research work about the handicraft industry in rear areas in war time in Hubei and Hunan provinces,this article makes a detailed study on the reasons why the handicraft industry flourished and prospered at that time.The development of handicraft industry in Hubei and Hunan provinces,had much in common though each province had its own distinct features.This comparative study shows that as China was badly in short of manufactured goods or industrial products then,the handicraft industry and the backward,inadequate machinery industry cooperated and incorporated with each other to make further progress so as to carry in the war.The success and achievement of handicraft industry in the mountainous areas in western part of Hubei and Hunan provinces played an important role,and made great contributions for war effort thereby making a necessary part of war time economy in rear areas.
