The process of urbanization is deeply influenced by population structure, economic model, and institutional arrangements. Through an overview of China’s population structure and economic model since the reform and opening up, it is pointed out that the population structure is undergoing two structural changes, that is, the closure of the "demographic window" and the forthcoming "demographic turning point," and the economic model is shifting from export and investment driven to innovation and domestic demand driven. Combining with the process of political and economic system reform since the reform and opening up, on the basis of reviewing the evolution of China’s urbanization, it points out that, from the "bottom-up urbanization" during the period of double-track gradual reform, to the "mobile urbanization" during the period of market economic system reform, and then to the "new urbanization" under the context of comprehensively deepening reform, the institutional barriers between urban and rural areas have gradually been broken, the equalization of urban and rural residents’ rights has been continuously improved, and the heterogeneous urban-rural dual structure has evolved into a homogeneous one-dimensional structure. Finally, it points out that China’s urbanization process has a tendency of falling into "stagnation in the flow in the future, and proposes relative targeted policy suggestions.