China’s economy has maintained an average annual growth rate of nearly 10% over the past 30 years

which is closely related to the rapid progress of urbanization. Urbanization is based on economic development

and industrial development plays an important supporting role in the process of urbanization. And the urbanization process will have an important impact on industrial development

especially the upgrading of industrial structure. The new urbanization has a significant negative impact on the upgrading of China’s industrial structure from a nationwide perspective. Government investment and environmental regulation have significant impact on the upgrading of industrial structure. R & D investment

household consumption and other factors have also promoted the upgrading of industrial structure. From various regions

the urbanization in the eastern and central regions has no obvious influence on the industrial structure

while the western region has a significant impact and the results are positive. China’s human capital advantage is not obvious. And the education level is generally low. It does not provide human capital support for the upgrading of industrial structure. Therefore

we put forward the following policy suggestions. On one hand

the government should accelerate the urbanization mode innovation

forming an industrial structure optimized urban structure as soon as possible. On the other hand

different environmental policies should be formulated according to local conditions. At the same time

government should improve the level of education in an all-round way. Finally

we can promote industrial synergy and upgrade the industrial structure by regional linkage.