Abstract: Urbanization is an essential demand of China’s economic development. When economy reaches a stage at which the gap between rural and urban regions is eliminated, social equality is realized and the surplus agricultural laborers are absorbed without the agricultural production falling down, we say the urbanization of China is on an optimal level. The ratio is the optimal urbanization ratio, which is about 63%. More important, we consider that the key point of the economic growth in the next stage of China is to speed up the urbanization and reach the optimal urbanization ratio.

Key words: optimal urbanization ratio, surplus agricultural laborers, economic growth