The population distribution pattern of China's ethnic groups, in which they live together over vast areas while some live in compact communities in small areas, plus the disparities between different areas in access to natural resources and stage of development make it pragmatic to adopt the policy of regional autonomy for ethnic minorities.

The history of the evolution of China's ethnic groups is one of frequent contacts and intermingling. In its long historical development, the various ethnic groups moved frequently from one place to another and gradually formed the pattern of living together over vast areas while some live in individual compact communities in small areas. The Han people, with the largest population, are distributed all over China, while the populations of the other 55 ethnic groups are relatively small, and most of them live in the frontier areas. Still, they can be found in all the administrative regions above county level in the hinterland. Given this population distribution pattern, establishing ethnic autonomous areas of different types at different administrative levels based on regions where ethnic minorities live in compact communities is conducive to the harmony and stability of relations between different ethnic groups and their common development.

The regions inhabited by ethnic minorities in compact communities are large, and rich in natural resources. But compared with other regions, particularly with developed regions, the level of economic and social development in these regions is relatively backward. Regional autonomy for ethnic minorities enables them to bring into full play their regional advantages and promote exchanges and cooperation between minority areas and other areas, and consequently quickens the pace of modernization both in the minority areas and the country as a whole and helps achieve common development of all regions and prosperity for all ethnic groups.