For a long time, the regional economy of China is the developing model of rural leading type. Now this model has come to an end. It must be transformed into the development model of regional economy of urban leading type. This requires that we should regard cities as the focal point of development and advance the regional economy development strategy of urbanization. This is a base for constructing the urban economic circle of the integration of urban and rural areas. The formation of urban economic circle should break the administrative line. We should implement this development strategy and explore new ways for development in order to strengthen the urban economic power progressively and spur the new development of the regional economy.