This report elaborates the subject, carrier and main form of urbanization, and discusses the importance of the urbanization, and forecastes the future trends of China's urbanization. The road of urbanization with Chinese characteristics is relying on large cities, focusing on small cities, gradually forming the large urban agglomerations with radiation effect. It will promotes the coordinated development of medium and small cities and towns, scientifically programs the functional orientation and industrial position of the cities in urban agglomeration; alleviates the pressure of the super large-scale cities; strengthens the industrial function of medium and small cities; enhances public services and residential functions of the small towns; and promotes the integration of urban and rural development.