Abstract: Karl Marx says: “Modern history is one of the urbanization of the countryside instead of the countrification of the city as was the case of ancient times.” China’s urbanization is still of a low level with a percentage of only 30. 39. Experiences in the past two decades show that the low level of urbanization has seriously hindered the growth of our economy.To gurantee the speed of economic increase set by the government, urbanization is a key problem to be solved in the next-stage economic development.Urbanization, however, cannot be advanced merely by urban development, instead, it must be obtained through building up small towns,whose development is the very core of China’s urbanization.

Key words: urbanization, economic development