Abstract ¡§Western areas¡¨is a very Vague concept to indicate a relative position in a particular sector. Since the 1950s'¡Mthis expression has often been shrouded in uncertainty. The earliest division mainly indicated the coastal areas of the country¡Mthe interior and remote areas. Economically speaking¡Monly two major areas¡Mare being referred to¡Mcoastal and interior. Later¡Munder the guiding thought of preparation against war¡Mfirst¡Msecond and third lines were delimited¡]including the big third line and the small third line¡^. For the last few years¡Mthe division into eastern¡Mcentral and werstern areas has also been in usage .Though at different times the aim of division ¡Mall recognized that the level of economic development was completely out of balance. Objectively ¡Mthree economic areas exist¡Geast ¡Mcenter and west. The western areas of the People's Republic of China are vast. Their total area is 5,280,000 square kilometer or 55% of the whole country's territory. The population numbers more than 230 million¡Vabout 23% of the country total population. In economic exploitation the western areas are in comparison with the central or eastern areas¡Mrelatively backward. The western areas¡Malthough their topography is complicated and difficult of acess have with their three¡Vdimensional limate and the perpendicular distribution of flora and fauna which are comparatively concentrated a wide variety of resources. With the rapid development of the economy of our country¡Mdevelopment is bound to start from the eastern seaboard and gradually develop toward the center and the western areas . The exploitation of the latter will strategically become more and more important in China' economy. In the scope of thire contracts and regulations¡Mjoint ventures have the right to conduct reforms of the technology of production ¡Mand increase the variety of designs and colors of the needs of domestic and foreign markets. Inventures may invite foreign businessmen to come to China and send their own personnel abroad business.