After more than 20 years of rocketing economic growth and rapid urbanization, China has reached a turning point in development. With per capita GDP reaching $1000 by the end of 2004, China has entered a stage of major social transformation which has been recognized by the international community. The level of urbanization has reached 41.7%, entering the period of rising urbanization in the “S”-shaped curve portrayed by R. Northam, an American geographer. Although there are different views on the path of China’s urbanization and future development, there is a broad consensus that China’s urbanization will continue to grow fast in the foreseeable future, or 15–20 years to come (The 11th Five-Year Plan for national economic and social development, promulgated in March 2006, estimates that the level of urbanization in China will reach 47% by 2010.). J. Stiglitz, the 2001 Nobel Laureate in economics, even juxtaposed the urbanization in China and the high-tech industry in the U.S. as the two major events affecting the world economy in the twenty-first century.