Why can't the traditional handicraft industry in ancient China develop into modern industry?

The most important thing is that the social environment at that time did not allow it.

First of all: the feudal environment at that time; Scholars, farmers, businessmen and businessmen were at the bottom of the society at that time. Nothing special. They don't usually go into business.

2. The establishment of workshops required labor, but at that time, most people were tied to the land, and there was not much surplus labor. At that time, it was very important to develop industry. In any dynasty in China, there was no enclosure movement like that in Britain, forcing farmers to leave the land.

Three: government support. Except for the rapid development of commerce in the Tang Dynasty, in other dynasties, the government's policy was to emphasize agriculture and restrain commerce. Especially in the corruption of state affairs, officials exploit businessmen more severely.