Abstract: The rural-urban fringe zone, as the forefront of rural urbanization, is the epitome of the pain in China's profound economic and social transformation, and the most sensitive area where social problems in urbanization are clustered. Its governance involves the transition and convergence between the urban and rural management systems as well as the adjustment of interests. It is, therefore, in urgent need of the reform and innovation of the government management system. The reform is a major adjustment of interests involving the relationship between industry and agriculture and that between urban and rural areas, which constitutes a major issue involving the governance of the grass-roots government and the overall development of urban and rural areas. Meanwhile, in the rural-urban fringe zone are found different dimensions of power game between the State and market, government and citizens, local residents and migrants, low-income groups and middle class, through which China's social changes and power game can be observed. The social development form of rural-urban fringe zone is quite different from that of urban and rural areas, which renders it the “blind area” of both urban and rural governance research. Urban governance is undergoing a process of “suburbanization” and the fringe zone is introducing social contradictions while accepting citizens and migrants. The zone accommodates local villagers, emerging middle class, urban low-income groups and migrant workers, forming a mosaic of class spatial distribution; incompatible multiple interests make the grass-roots government at the confluence of contradictions. The development of the fringe zone is actually a process of “spatial redistribution”, which has an important impact on China's stratum structure and social governance.

Key words: spatial redistribution, rural-urban fringe zone, social governance, middle class, migrant workers, large-scale society, space governance