With the development of digital technology in recent years, it has gradually been integrated into all sectors of the economy and reshaped the regional economy. The Chengdu-Chongqing Twin-City Economic Circle (CTEC) in western China is one of the main development areas of the region's economy. To promote the coordinated development of the region, this paper will examine how the digital economy can help achieve such coordination in the Central-Western Economic Circle (CTEC). As shown in the results of the mechanism analysis, the digital economy promotes coordinated development in all areas of the country, provinces, within provinces and among urban and rural areas through the following three channels: (1) penetration and empowerment, (2) network synergy and (3) spatial reshaping. Correspondingly, it is suggested that efforts be made to improve the digital infrastructure and connectivity, promote differential development strategies for the digital economy, enhance the digital literacy of human resources, etc.