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This paper offers a novel explanation for the lower urbanization rate and great urban-rural inequality in China.Our study reveals that,heavy-industry-oriented development strategy will result in lower urbanization rate and higher urban-rural inequality.The greater the degree of heavy-industry-oriented development strategy is,the lower the urbanization rate is,and the higher the urban-rural inequality is.From a dynamic perspective,heavy-industry-oriented development strategy reduces the capital accumulation rate,which results in a slower progress of urbanization and a highly persistent urban-rural inequality.The higher the degree of heavy-industry-oriented development strategy,the slower the progress of urbanization,and the longer the urban-rural inequality will last.This mechanism can potentially explain the lower urbanization rate and higher urban-rural inequality in China under a unified framework.