By referring to China's official statistical data, especially ”The analysis of the demand and supply in some cities' labor markets” and ”The report on migrant workers” which are not much referred to by Taiwanese researchers, this paper explores the status quo of the westward movement of manufacturing and its social and economic impact on China. This paper demonstrates that the westward movement of manufacturing is deeply influencing the Chinese economy and society. It leads to economic growth in the central and western region significantly exceeding that in the eastern region. It also causes a labor shortage in central and western China, which has started to stop the flow of migrant workers from inner China to coastal China.