Based on the dual sector model, this paper makes an analysis on the evolution of the relationship between the development of productive service industry and manufacturing industry in different stages of industrialization and the influencing factors on the development of these industries in different parts of China. The empirical analysis shows that there is a significant difference in the development of productive service industry and manufacturing industry in different regions. The relationship between productive service industry and manufacturing industry in the eastern region presents interactive development. The relevance between manufacturing and producer services in the central region is comparatively weak, and thus a pattern of interactive development has not yet formed. In the western region, the manufacturing is underdeveloped, the production service is developing slowly, and the correlation between the two industries is very weak. According to the specific stages of development and actual condition of each area, different development strategies should be adopted. In the eastern region, full play should be given to the role of the market, the functions of the government should be clarified, and thus promote the successful fusion of manufacturing and productive services. The central region should accelerate the transformation and upgrading of manufacturing industry, optimize the structure of the service industry, and promote the interactive development of the manufacturing and productive services. The western region should stride over the stage of heavy industrialization, and lay more stress on the development of light industry, ecological agriculture and services, and therefore build the city system with western characteristics in which small and medium-sized cities play the main part and large cities are as the auxiliary.