| During the process of the exploiting the west of China, Chengdu, the capital of Sichuan province, lies in an important position. Being the first class central city in the economical area along the Yangzi river's headwaters, it is the science center, trade center, finance center and traffic center in the Southwest China and it plays an strategic part to the economy development of the west.Chengdu's industry is based on the manufacturing, the raw and processed materials industry and the information industry. Now, Chengdu has become an all-around city with high and new technologic industry and great innovative ability from a provider of raw materials. The planet cities and small towns around Chengdu have come into being an energetic economic area.In 2002,the GDP of Chengdu got to 166.300 million which almost takes one third of the GDP of Sichuan province and it ranked the fourth only after Guangzhou, Shengzhen and Hangzhou among the 15 vice state cities. The rapid and efficient development of Chengdu will accelerate the construction of Sichuan province and even the construction of China.The towns locate in the suburb of Chengdu are very important to the economic development of Chengdu. Being the base of great city, they provide all kinds of industrial elements .On the other hand, they connect the central districts and outskirts towns of Chengdu. With good basic conditions, the towns are the veryeffience areas for the central districts' expanding and they may become the hearts of the rural areas, which will absorb the residual labour force. Starting with the development of the suburb of Chengdu, the author of the article uses many research methods and theories such as strategy management, industrial economics. Further more, the author describes the development of Xihe Town which is one of the towns in Chengdu's suburb. Based on the description, the circumstance evaluation and strategy, we bring forward some suggestions and hope that they will be useful to Chengdu's economic development.
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