With the change of geopolitical pattern of the world, Pacific rim area increases economic cooperation,instead of military antagonism. Afer reform and open to outside world, south China takes in an amount of investment from Hongkong, Macao and Taiwan, taking advantage of superior geo environment and thus forms a typical model of core periphery. The core Periphery model in south China is territorially made of three parts: core area Hongkong, Macao and Taiwan; second core area Zhujiang delta; peripherial area Hunan Province, Jiangxi Province, Fujian Province and Hainan Province and the Guangxi zhuang Autonomous Region. The evolution of this model can be divided into four stages: (1)the stage of polarization of core area; (2)the stage of second core area strongly controlled by core area; (3)the transitional stage of second core area; (4)the stage of south China territorially unified. Taking the core periphery model in south China as an integrity of interrelational and rational division, its whole functional organized system is “input-product-assemble-output”, core area is mainly the managed and transported centre, second core area has product and productive control function and become centre of manufacturing centre of study and development, periphery area is constructed as the centre of material and raw material and the base of agricutural and side line product. Based on the analysis of the formative structure,evolutional law and the design of territorial function, we suggust the way of territerial optimization as follows: (1) to establish the large hinterland which takes Xijiang water basin as its core; (2) to construct the hign and renewed technogical corridor; (3) to construct stable and varied material and raw material bases; (4) to reinforce the organization and adjustment and managment between core area, second core area and periphericl area; (5) to constuct the varied corridor among core area, second core area and perpheric area.