China's regional economic development, after three-line construction and reform policy of opening up, has seen a certain level of achievement. However, its strategic goal of narrowing the gap between the East and the West has never been fulfilled. In the course of its policy changes, China has seen Deng Xiaoping’s idea of "Rich First" and strategic concept of "Two big situations", forming a "Small Wealth Society" first and then stepping to an overall well-off society. All these reflect one thing: China has switched its strategy of narrowing the gap between the urban area and the country side to that of narrowing the gap between the East and the West. High level of relevancy therefore exists between this change of strategy on regional economic development and urbanization which is usually executed with the aim to promote the living standards of the public. Although the reform policy of opening up has undergone smoothly by means of foreign investment, the implementation of urbanization policy on their own efforts has the problem of household registry to solve in the first place.