This study is related to the socio-economic development strategy of a typical underdeveloped coastal open city (named L) which was mainly done by means of system dynamics approach.L city is located in the north to the Taiwan Straits. It is one of the most famous lands of overseas Chinese ancestors in China. And it famous with a long history and splendid ancient culture. It is the starting point of the “Silk Way On Sea” with excellent ports and rich natural resources. L city had its economic prosperity in the ancient times. Coming to modern times, however, its economy was very backward because of having been closed the region to international intercourse for a very long time. Since the implementation of the economic reform and open policy, the city has achieved a great progress in the economy while the pace of regional industrialization has been more rapid in the past decades. It is the typical example on the coastal open area of China. Therefore, it is necessary to study the problems of regions to garantee the continuous, steady and coordinated development of the regional economy in the future.