The city-size structure and spatial distribution of the urban system r
eflect socioeconomic development and its spatial distribution. By trac
king the development of the urban system, we can not only monitor the
development of the society, but also reveal problems in the process of
development and thereby provide a basis for policymaking. Yeh and Xu
(1985) analyzed the development of China's urban system between 1949 a
nd 1978. Since 1978 a series of new policies has been introduced, incl
uding rural reform, urban reform, establishment of the socialist marke
t system, the opening to the outside world, and emphasis on the develo
pment of the coastal region of China. All have contributed to China's
emergence as the most rapidly growing economy in the world and have dr
amatically changed its economic structure and pattern of regional deve
lopment. Correspondingly, significant changes also have taken place wi
thin China's urban system. This paper focuses on new trends in China's
urban system between 1978 and 1990 and their relationships with econo
mic development during this period.