Free economic zone (FEZ) has a long history and plays a more and more important role in the world economy. Most studies, however, focused on the theoretical analysis of benefit and cost as well as the economic role of FEZ in the less developed countries and little attention has been paid to the evolution of FEZ. This paper will improve the above-mentioned studies and put forward the structural and spatial evolutionary model of FEZ by analyzing the development of objectives, preferential policy, governance structure, industrial sectors and location of FEZs based on the international economic and political development. FEZs develop towards: 1) more comprehensive and macro objectives, 2) more industry-oriented and multi-preferential policies, 3) more cross-national and combination zones with administrative areas, 4) more technology-intensive and multi-industries, 5) more flexible location and larger spatial dimensions, 6) more rapid evolution and typologies, and 7) more economic integration to the host economy. Free economic zone (FEZ) has a long history and plays a more and more important role in the world economy. Most studies, however, focused on the theoretical analysis of benefit and cost as well as the economic role of FEZ in the less concerned countries This paper will improve the above-mentioned studies and put forward the structural and spatial evolutionary model of FEZ by analyzing the development of objectives, preferential policy, governance structure, industrial sectors and location of FEZs based on the international economic and political development. FEZs develop towards: 1) more comprehensive and macro objectives, 2) more industry-oriented and multi-preferential policies, 3) more cross-national and combination zones with administrative areas, 4) more technology-intensive and multi-industries, 5) more flexible location and larger spatial dimensions, 6) more rapid evolution and typologies, and 7) more economic integrati on to the host economy.