With the change of geopolitical pattern of the world, pacific rim area increases economic cooperation, instead of military antagonism. After reform and open to outside world, the southern China takes in an amount of investment from Hongkong, Macao and Taiwan, taking advantage of superior geo environment and thus forms a topical model of core periphery in the southern China. The core periphery model in the southern China is territorially made of three parts: core area — Hong Kong, Macao and Taiwan; peripherial area — Zhujiang delta; second core area — parts of Hunan Province, Jiangxi Province, Fujian Province and Hainan Province and Guangxi Zhuang Autonomous Region. Its evolutional stage of this model can be divided into four stages: (1) the stage of polarization of core area; (2) the stage of the second core area strongly controlled by core area; (3) the transitional stage of the second area; (4) the stage of the southern China space integrity. Taking the core periphrial model in the southern China as an integrity of interrelational and rational division, its whole functional organized system is “input product assemble output”, core area is mainly then as the managed and transported center, the second area plays a product and productive control function and becomes center of manufacturing, study and development, periphrial area constructs as the center of material and raw material and the base of agricultural and side line products. Based on the analysis of the formative structure, evolutional law and the design of territorial function, we suggust the way of territerial optimazation as follows: (1) establishing the large hinterland which takes Xijiang basin as its core; (2) construct the high and renewed technological corridor; (3) constructing stable and varied material and raw material base; (4) reinforcing the organization and adjustment and managment between core area, periphrial area and second periphrial area. (5) constucting the varied corridor among core area, the second area and perphrial area.