This paper discusses the growth and structure of urbanization in major cities and in rural areas in China. The definition of urban area in China is complex and unique in distinguishing between cities with and without an urban status. The designation of "urban" to a city has important implications for social welfare of the urban population. Urban cities grant registration to citizens, which entitles them to food, an occupation, and housing. Since 1949, "city" changed definition in 1955, 1963, and 1984. Urban and rural districts are thus separated administratively. Government statistics are based on five designations of urban population: officially designated cities and towns, areas under municipal jurisdiction, urban population, urban population with an urban registry, and city district population. There are city-administered counties also in a three-tiered structure of government: provincial government, city administration, and county administration. Population statistics are based on population censuses or city registries and do not account for migration. Commune populations are people who have quit agriculture but are counted as rural population, unless they are registered in officially designated towns. Commune populations are people working in village and township enterprises. World Bank statistics indicate an increase in urbanization rates from 1965 to 1989, from 18% to 53%, but most of the growth occurred during the 1980s. It is argued that China's population statistics must not be accepted uncritically. The author offers a reconstructed set of Chinese urbanization figures that would be compatible with other countries. Urbanization was estimated to be 21% in 1961, 16% in 1971, 18.7% in 1981, and 29.7% in 1991. Seven major conclusions are drawn. For instance, it is concluded that urban population growth was 5% or more during the 1980s in nine provinces having populations of 380 million or more. Three provinces had rates of 4-5%. The 1990s are expected to show urban growth in areas with over 600 million people.