1. This book is the first attempt to investigate the impact of international trade liberalization and regional integration on the distribution of industrial activities within China, which offers an ideal setting to investigate this issue.2. This book gives the rational of the success of coastal regions in China relative to other regions is accounted for by the interaction of geographical advantage (first nature) and self-reinforcing economic forces (second nature).3. It is conceivable that HME (home market effect) influences the spatial disparity across regions within a country. This book attempts to interpret a definition of HME and claims that HME contains two critical components i.e. PME (primary magnification effect) and SME (secondary magnification effect). It reinvestigates HME in terms of wages and study the evolution of spatial disparity during regional integration using panel data of China.