How the Digital Economy Reshaped the Economic Geography: Evidence From 284 Cities in China

China exhibits notable regional disparities, with inland cities generally trailing behind their coastal counterparts—a gap strongly linked to their distance to core ports. Drawing on data from 284 prefecture‐level and higher cities, this study provides evidence that the digital economy significantly alleviates the geographical disadvantage faced by inland cities remote from core ports. Inland cities boasting a robust digital economy have narrowed the per capita GDP gap with coastal cities. Mechanistically, the digital economy weakens the correlation between trade costs and geographical distance, expands the import‐export volumes of inland cities, attracts more foreign direct investment, and enables them to reap the benefits of agglomeration effects. This research provides a novel perspective for coordinating regional development in the digital era.