The urbanization of population and that of countryside, which one will be the real trend of social development? A great difference between them is that the urbanization of population emphasizes the migration of population from rural area to towns and cities while the urbanization of contryside stresses on the transformation of identity of people from farmer to city residents on the spot. As a kind of method of developing rural economy, the industrialization and urbanization of countryside have been emphasized by Chinese government and many researchers. It really has brought many good results such as the development of township and village enterprises. But the industrialization and urbanization of countryside are not the real trend of social development. It can only be realized in a small part of present countrysice and can't be true for all countryside. The decentralized distribution of town and vilage enterprises has already given rise to some problems such as pollution and low efficiency. Now the correct option is the urbanization of population, i.e. accelerating the speed of migration of rural people to towns and cities and promoting the centralization of industries and population. To do so, there must be a lot of new policies.