The aim of this study is to provide insight into the recent industrial agglomeration in China's border areas. As a first step towards more a comprehensive and extensive study on the interaction between industrial agglomeration and local economic development in the Chinese economy, this study examines the status of industrial development in Yanbian in the China-North Korea-Russia triangle border area. In particular, we examined the inŽuence of a decrease in transport costs on industrial agglomerations in the Yanbian area, and describe the industrial agglomeration gradually appeared in these border areas by increasing international trade with regional economic integration, and decreasing transport costs by maintaining the traffic infrastructure under the support of national development policies. We also clarified that the development strategy covered the disadvantageous initial conditions for industrial agglomerations in the Yanbian area.