The Third Front Movement (Chinese: 三线建设; pinyin: Sānxiàn jiànshè) was a massive industrial development by China in its interior starting in 1964. It involved large-scale investment in national defense, technology, basic industries (including manufacturing, mining, metal, and electricity), transportation and other infrastructures investments.
“Third Front ” is a geo-military concept: it is relative to the “First Front” area that is close to the potential war fronts. The Third Front region covers 13 provinces and autonomous regions with its core area in the Northwest (including Shaanxi, Gansu, Ningxia, and Qinghai) and Southwest (including nowadays Sichuan, Chongqing, Yunnan, and Guizhou). It was motivated by national defense considerations, most noticeably the escalation of the Vietnam War after the Gulf of Tonkin Incident, the Sino-Soviet Split and small-scale armed skirmishes between the two countries.
While based on national defense considerations, the Third Front Movement in fact industrialized part of China’s most interior and agricultural region. The area of the Third Front is the hardest part of China for any invading foreign power to access. During the Second Sino-Japanese War of 1937-45, it remained unconquered. The Kuomintang (at that time in alliance with the Chinese Communists based at Yan'an) made Chongqing their capital. Some Chinese industry was also moved there from the cities. So the 'Third Front' strategy had precedents the scale of the Third Front Movement was far larger than the one initiated by the Kuomintang. The relative size of the Third Front Movement (as a share of the total national investments) was also larger than the China Western Development Movement initiated in 2001. Between 1964 and 1980, China invested 205 billion yuan in the Third Front Region, accounting for 39.01% of total national investment in basic industries and infrastructure. Millions of factory workers, cadres, intellectuals, military personnel, and tens of millions of construction workers, flocked to the Third Front region. More than 1,100 large and medium-sized projects were established during the Third Front period. With large projects such as Chengdu-Kunming Railway, Panzhihua Iron and Steel, Second Auto Works, the Third Front Movement stimulated previously poor and agricultural economies in China’s southwest and northwest. Dozens of cities, such as Mianyang, Deyang, Panzhihua in Sichuan, Guiyang in Guizhou, Shiyan in Hubei, emerged as major industrial cities. However, the designs of many Third Front projects were deficient. For national defense reasons, location choices for the Third Front projects followed the guiding principle “Close to mountains, dispersed, hidden” (kaoshan, fensan, yinbi). Many Third Front projects were located in remote areas that were hard to access. Many of them were far away from supplies and potential markets. The Third Front Movement was carried out in a hurry. Many Third Front projects were simultaneously being designed, constructed, and put in production, (biansheji, bianshigong, bianshengchan). The degree of inefficiency was egregious. Since the mid-1970s, government subsidies gradually dwindled. Since the Reform of the state-owned enterprises starting in the 1980s, many Third Front plants went bankrupt. Yet some others reinvented themselves and continued to serve as pillars in their respective local economies.