Abstract:Based on the analysis of regional development disparity and labor cost shock in China, using the data of manufacturing industrial enterprises above designated size during 1998—2008, this paper calculates and analyzes the development of manufacturing industries and their labor-intensive industry before and after Lewis Touring-point, and respectively analyzes the forming mechanism of the manufacturing industries in coastal areas and inland areas. The research shows that Chinese labor market is experiencing the change from dual economic model to neo-classic economic model, that the coastal areas which have been developing in advance will face “labor shortage” earlier, and the industrial agglomeration effect attracting manufacturing industries to put together along costal areas becomes less, however, the demographic dividend in inland areas of middle and west of China may keep relatively longer time, as a result, the factor cost effect leading to the transfer of manufacturing industries to inland areas will gradually increase, Currently, the effect of above actions and trends is especially significant on labor-intensive industries.