The composite index includes five main indicators, including the gross domestic product per capita, the gross product ratio among the agriculture, industry, and service industries, the proportion of manufactured goods of all total consumer goods, the population urbanization rate, as well as the employment rate in the agriculture, industrial, and service industries.

Based on a couple years of research on China's industrialization processes, the national social science academy concluded that the country has entered the later half of the intermediate industrialization phase.

The blue paper suggested that the proportion of agriculture as of 2005 has dropped to 12.6 percent of the national economy in terms of gross product. That figure is down from 27.9 percent in 1978, with the initiation of economic reforms. The employment rate in agriculture also declined to 44.8 percent in 2005 from 70.5 percent in 1978.

Meanwhile, the proportion of service industry production climbed to 39.9 percent in 2005 from 24.2 percent in 1978, and the employment rate there rose to 31.4 percent in 2005 from 12.2 percent about three decade ago.

The researching panel of the academy separated the industrialization processes into initial, medium, and final phases.