Abstract:After the Opium War, specially after the Sino Japanese War of 1894-1895, some changes had taken place in Chinese productive forces of traditional industries, such as the alteration of handicraft tools, of the technological mode of "millstone + steam engine". This was the intermediate technology during the transmission from tradition to modern in the handicraft industry. These changes brought about some active effects: it prepared factors for the transmission from handicraft to machinery industry, and promoted the develoment of handicraft economic zones in rural villages. At the same time, it provided market conditions for the development of national machinery industry, which enriched the choice of industrialization way in modern China.