Since President Xi Jinping's emphasis on China being in its economic "new normal", how to understand this phrase has become an issue drawing attention from all parties. In president Xi’s remarks, the new normal mainly reflect changes in three aspects: an economic growth speed to be slowed down, an economic structure to be adjusted and growth drivers to be shifted. Accordingly, governments are required to conduct reforms and innovations centering around marketization as well as streamlining administration and delegating power. We consider that the macro changes brought about through the new normal are beyond the above mentioned aspects, and a major change will occur in the field of population. With an increasingly aging population, China is about to enter a population-challenged era. However, China’s local governments at various levels are still not realizing the seriousness of this issue, still expanding in its old traditional way. The present city size swelling and industrial expansion will soon be grimly challenged by population.