Abstract: It is indicated in the empirical analysis, by use of dynamic panel data in thirty provinces of China from 2002 to 2013, of the relationship between the regionally professional and diversified division of labor and industrial structure upgrading that the diversification makes positively influence on the upgrading in the whole country and eastern and western regions while the regional professionalization is negatively functional and that of middle regions the opposite. As to the whole country as well as the eastern and middle and western regions, human resources and fixed assets investment continuously take an active part and government intervention and trade influence are not stable.