Author: Xi Qiangmin (Associate Professor at the School of Applied Economics, Renmin University of China) proposed in the report of the 20th National Congress of the Communist Party of China that "optimizing the layout of major productive forces, building a regional economic layout and land spatial system with complementary advantages and high-quality development", and inter regional industrial transfer is an important path to achieve this goal. Inter regional industrial transfer refers to the process of industry migration between regions within a country due to changes in economic policy regulation, technological progress, resource supply, and other conditions. Essentially, it is the migration and expansion of enterprises at the micro level. In the new era, the direction of promoting inter regional industrial transfer in China is more clear. Under the inter regional transfer of industries from east to west, the Chinese economy is moving towards balance in development, and the economic share of the western region continues to increase after undertaking the diffusion of economic activities from the eastern region. According to data from the National Bureau of Statistics, the share of GDP in the western region of China increased by 1.75 percentage points from 2012 to 2022, while the share in the eastern region decreased by 0.51 percentage points, indicating an improvement in the balance of the regional economic pattern. The digital economy is driving a new round of technological revolution and industrial transformation, promoting the improvement of production efficiency, the reconstruction of social relations, and the comprehensive transformation of economic and social structure. The integration of digital economy and real economy is gradually changing the operating mode of traditional economy. The low cost of data element replication enhances its liquidity and significantly enhances the user carrying capacity of information network platforms, which to some extent strengthens economies of scale and has a profound impact on the trend of inter regional industrial transfer. Specifically, due to the significant reduction in transaction costs in the digital age, industrial transfer will become more frequent and the reach will gradually expand, with the service industry becoming increasingly active. The form of agglomeration has shifted from geographical agglomeration to virtual agglomeration, and the cross regional layout model of "headquarters branch" is more obvious. Implementing the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, exploring how to promote the orderly transfer and rational layout of industries in the context of the digital economy has become an unavoidable important practical issue. Technical support: With the gradual diffusion and virtual agglomeration of industries and the emergence of a new round of technological revolution and industrial transformation, digital technology is gradually integrating into the production, interaction, and migration processes of enterprises. According to data from the Ministry of Industry and Information Technology, the CNC rate of key processes and the popularization rate of digital research and development design tools in industrial enterprises across the country have increased to 58.6% and 77% respectively in 2022, supporting the gradual diffusion of industries from the center to the outside and virtual agglomeration from offline to online. Progressive diffusion is manifested at the enterprise level as a cross regional layout of "headquarters branch offices", achieving spatial separation of the value chain; At the industrial level, some service industries are gradually expanding outward, while the overall span of migration space for general manufacturing industries is expanding. Virtual agglomeration manifests as the transfer and concentration of certain links and interactive communities between enterprises from offline to online. To strengthen the technical support for industrial transfer, firstly, enterprises should be guided to build an integrated digital platform, comprehensively integrate internal information systems, form intelligent decision-making capabilities supported by data, and actively guide the use of digital technology in production to improve the intelligence, automation, and informatization level of production. Secondly, accelerate the construction of an industrial transfer project library, gather supply and demand information on industrial transfer in various regions, and carry out precise development based on regional resource endowments and development directions