Administrative division adjustment is moderate changes of action in the existing administrative divisions in order to meet the objective needs of economic and social development. Since the reform and opening-up，China’s county-level administrative divisions have been adjusted frequently，the most typical of which are converting counties into cities and converting counties（cities）into districts. This report first sorts out and compares the characteristics，fundamental causes and economic effects of the two administrative division adjustment methods，and then analyzes the main problems faced by newly established county-level cities and districts on this basis. Finally，in view of the current national policy of “strictly controlling the removal of counties and building cities into districts”，this report puts forward policy recommendations to promote urban development in China for county cities，new cities（districts）government departments and approval departments.