Abstract: This paper is based on the center - periphery model, through circulation costs and circulation supply capacity of these two core concepts, the use of comparative static analysis to study the mechanisms of circulation changes in the cost of manufacturing space agglomeration.As a discussion of theory with practice, we used 2004--2013 years of relevant data of China's industrial economy, by analyzing the circulation cost structure, circulation costs were calculated for each region of the dominant and recessive circulation costs.The empirical results show: regional differences in circulation costs are significant, the hidden costs of manufacturing space circulation agglomeration of very significant negative correlation between the circulation costs and manufacturing industry agglomeration.