During the occupation of treaty ports in eastern China by Western powers and of Northeast China by Russia and Japan, infrastructure and transport networks such as railway were developed intensively. Therefore, it was convenient to develop manufacturing there.
Coastal cities were densely populated and provided a huge labour supply for the industry.
Coastal flat land provide ample space for expansion.
The ship-building industry in Dalian and car manufacturing industry in Shenyang and Chanchun provided great demand for steel in Liaoning.