The supply side provides a crucial perspective for structural change research, and clarifying how factor-biased technological change affects industrial structure transformation is particularly important. Unlike developed economies with stabilized development, emerging economies are currently experiencing rapid economic expansion or transitioning towards high-quality development, characterized by high factor substitution elasticity and strong developmental flexibility. As the world's largest emerging economy, China is in a critical phase of this transition, with its factor structure and policy orientation being highly representative. Focusing on emerging economies, based on their high elasticity of factor substitution and heterogeneous rates of factor-augmenting technological progress, it develops a two-sector nested production function model. The influence mechanism of factor-biased technological change on industrial structure transformation is investigated when capital-labor substitution elasticity remains fixed, focusing on relative changes in capital and labor technological efficiency. Through theoretical derivation and numerical simulation, three major pathways are identified: the "resource allocation effect", the "capital deepening effect", and the "output scale effect". When capital technological efficiency grows faster in relatively capital-intensive sectors, capital share across industries is increased, capital intensity within industries is enhanced, and output share across industries is decreased, ultimately expanding production scale in relatively labor-intensive sectors. Moreover, when the relatively capital-intensive sector is defined as manufacturing and the relatively labor-intensive sector as services, such transformation process aligns with the direction of industrial structure optimization. Econometric tests using Chinese data further verify the above mechanisms. Implications are provided for industrial policy formulation and sustainable development in emerging economies, along with insights for technological innovation-driven modernization of industrial systems in Chinese-style modernization.