Industrial agglomeration occurrs worldwide as a phenomenon of industrial evolution. Spatial agglomeration appears in the distribution of China’smanufacturing industry, which shows that the industrial agglomeration grows faster in the eastern coastal areas than that in the western China. Regional economic development is related closely with industrial agglomeration in China. In some p lace, industrial agglomeration p romotes the local economic development,while it lags behind or blocks the local economic growth in other place, which enlarges the development gap regionally. And so encouraging the industrial agglomeration of backwarded areas can close the develop ing gap regionally.