Industrial space evolution is the process of its space location selection and transformation to realize profit maximization. Based on the economic realization of regional dual-open-economy, under new economic geography analysis framework, a two-country-three-zone model has been constructed, the earnings of the enterprises at each location under the condition of monopoly competition is compared, the judging condition of space location evolution of the enterprises is derived and furthermore industrial space location evolution system is built. The analysis shows whether the enterprises can conduct space location transformation depends on whether the benefit and cost from their location transformation can make the enterprises realize profit maximization, however, the key factors affecting the benefit and cost are trade freedom degree, the factors and cost in the location and so on. Thus, the government of a country can guide the location evolution of foreign companies and domestic enterprises by regulating and controlling trade freedom degree, especially for those locations in which the workers earn low salaries, enlarge the open degree between the location and the location which has high open degree or raise its direct foreign open degree, all of which is conducive to attracting the enterprises to stay in the locations.