Abstract:Considering the drawbacks of the traditional methodology in analyzing industrial agglomeration, regional division of labour and industrial relocation on basis of a single indicator of scale or efficiency from the perspective of perfect competition, we choose to analyze industrial relocation and Structural Optimization of Manufacturing Sectors in Beijing, Tianjin and Hebei on basis of a combined indicators of scale and efficiency from the perspective of imperfect competition. From our method stem out two obvious advantages: 1) the driving forces, features and nature of relocation of relevant industries are extracted; 2) the method lends itself to the zeroing in priorities in the process of industrial relocation. From our analysis a two-dimensional diagram of industrial relocation and structural optimization is derived, with the "area of relocating" and "area of structural optimization" indicating respectively the key sectors involved in industrial relocation and structural optimization.