Abstract: From the economic geographical point of view, both mineral and energy resources and geographical position are important conditions, which we must make full use of, in establishing regional industrial systems with certain specialized sectors as the core.According to the categories, amounts, and territorial combination types of mineral resources, 26 provinces (or autonomous regions) if China can be classified jinto five types.(1)9 provinces with well-combined mineral resources and some of the important mineals in great amount.(2) 4 provinces with certain rich minerals but the combination of minerals not so good;(3) 3 provinces with a considerable range of minerals but without large reserves.(4)6 provinces with less kinds and amounts of reserves but still rich in a certain mineral.(5) 4 provinces with least kinds and very limited amounts of resrves.The regional economic appraisal of energy conditions is the basis of the rational distribution of production. Regarding this, the first fundamental work is the inventory of potential energy resource of different regions and comparison of their respective structure and richness of energy resource.The energy resource structure of six large regions of China is shown in Tab.2.Energy resource per capita is more meaningful than absolute amount in consideration of the great differentiation of area and population among provinces in China. According to this index, all provinces can be classified into four types:(1)8 provinces with richest energy resource (per capita energy resource more than 1000 tce); (2)5 provinces with moderately rich energy resouce (300-1000 tce);(3) 9 provinces with less rich energy resource (100-300 tce);(4) 4 provinces short of energy resource (less than 100 tce).Geographical position of a region is closely related to regional advantages which we should make full use of. In the author's opinion, it consists of. (1)the physical geogrphical position, (2)the communication position, (3)the distance to the nearest industrial area of the country, (4)accessibility to the major harbours, (5)interregional transport trunklines and (6)interregional traffic capacity.A preliminary analysis of the interregional traffic capacity of 25 provinces (exclusive of Taiwan and Tibet) shows that four grades could be classified.Ⅰ grade (largest traffic capacity, more than 200 million tons annually). 7 provinces belong to this grade,Ⅱ grade (large capacity, 100-200 million tons). 6 provinces,Ⅲ grade (small capacity, 50-100 million tons). 6 provinces,Ⅳ grade (very small capacity, less than 50 million tons). 6 provinces.After liberation, quite a few provinces, such as Liaoning, Jilin, Hebei, Shan-gdong, Jiangsu, etc. with very favourable conditions of geographical position and transport facilities, have played an important part in the development of industry. However, several provinces with advantageous geographical position and large traffic capacity haven't deserved much more attention yet. For example, Henau, Anhui, Hubei, and Hunan, situated in the central part of the country and easily accessible-in all directions, should be considered as one of the key areas for capital construction from now on.In Table 4 are listed 12 index of 26 provinces, including kinds of key mineral, type of territorial combination of minerals, ratio of reserves of coal to that of iron ore, grade of richness of energy resources, grade of interregional traffic capacity, interregional transport trunklins, and in addition, proportion of the provincial population to the total of the country, proportion of the urban population to the provincial population, level of development of the agriculture, kinds of raw materials for light industry, proportion of the provincial industrial output value to the total of the country. It may be of some reference value to understand the advantages and disadvantages of each province in developing industry and assuring the orientation of its industry.