Abstract: The Two Song period was a new peak of economic development after the Sui and Tang Dynasties. It was a typical stage of
the southward shift of ancient China's economic center, and was also an important period of the great national integration in the
feudalist China. During the Two Song Dynasties, the prosperity of economy was mainly based on the development of agriculture and
commodity economy, and the movement of political center to the south. Its effects on ethnic relationships mainly include the promotions
of national absorption, interaction and identity. Economic development had also accelerated the pace of minority feudalization to a
certain extent, and had become a material base for stabilizing power relations with neighboring nations, creating a peaceful environment
for social development, and laying a solid foundation for the Yuan government to rule a unified multi-ethnic country.

Key words: Two Song Beriod, economic development, ethnic relations