UrbanizationisamajorstrategicissueinChina’seconomictransformation.ThispaperarguesthatChinashouldcoordinatethedevelopmentofurbanization,industrialization,agriculturalmodernization,andinformationalization,basedonanalysisofthefivemajordeviationsintheprocessofChina’surbanization.InordertoadvancethesustainabledevelopmentofurbanizationinChina,followingmeasuresneedtobetakenbythegovernment:balancingthedevelopmentoflarge,medium-sizedandsmallcitiesandtowns,reformingthegovernment’sfiscalandtaxsystem,encouragingmigrantworkersandtheirfamiliestoworkandliveatlocalcitiesandtowns,providingcitizenshiptomigrantworkers,andavoidingtheinter-citiescutthroatcompetitiononGDP.