In view of artificially high urbanization rate of China and possible causes, survey and data analysis methods were used to discuss reform of household registration system, and path for promoting rural land system reform. Results show that it is required to eliminate bottlenecks of land system in the advance of new urbanization process. In line with land system bottlenecks of new urbanization, it is recommended to take following measures. (i) Promoting land right confirmation centered land system reform. (ii) Weakening rural land ownership and stressing land use right. (iii) Establishing urban and rural integrated land market and putting an end to low cost urbanization road. (iv) Realizing asset value of rural construction land and tackling the problem of insufficient construction land. (v) Reforming the land expropriation system and increasing the share of gain in land value to farmers. (vi) Implementing different land policies to promote coordinated development of regional social economy. (vii) Establishing land circulation access system to ensure unchanged land use purpose and high efficient use.