The assumption of rural industrialization is that as long as people can find a job with a reasonable pay in rural area, they will not immigrate into city. However, the labor market of rural industry is not competitive compared with urban labor market. What's more, the regional discrimination has always been existed. Due to the vast rural population in China, it's a good idea to urbanize rural area itself, however, it won't be actual feasible without attracting people to live in. In China the situation is quite different from north to south. In northern China rural industries are seldom as competitive as southern Chinese rural industries. Southern China is the most developed region of China, Therefore its experience in rural industrialization may set up example for southern counties. This paper will discuss both the advantage and disadvantage of rural urbanization in China, by studying a specific case: Jiangyin, which is a fast developing rural area in Jiangsu Province.