Abstract: There are many factors leading to the backwardness of the development in West China, but what should not be neglected is the role of the system of hou sehold registration as a basic social institution arrangement in China. Undoubte dly, the system has been playing an important role in constructing spatial socia l hierarchy. To improve social development in the West and construct a harmoniou s society, it is necessary to adjust investment strategies and modify the system of household registration.