During the last three decades, China has great changes, and these changes were originally a series of progressive political reform-driven. The late 70’s of the last century, the agricultural sector reconstruct, this is known as the “agricultural reform”, lasted for eight years. The subsequent second period known as the “urban reform” began in 1985, until now it is still continuing. The rapid development of industrialization, restructuring of state-owned enterprises, trade openness increased export tax rebates and financial assistance links, as well as the gradual liberalization of the financial markets are the characteristics of this period. But the “urban reform” also brought the negatively impact: that is caused the inequalities between urban and rural increased again. The causes of inequality caused by urban and rural China is multifaceted, but the main reason is that “duality system”.