China has adopted an unbalanced policy for economic development to improve its domestic economy and international competitiveness for more than three decades. During this process, rural education has undergone a series of reforms. With reference to compulsory education, this article argues that rural education in China is a pragmatic instrument for the state to expand and improve the quality of urbanization. Rural education can be used to serve urbanization, is influenced by the rural-urban disparities brought about by urbanization, and receives urban aid and support in exchange for following state guidelines. Due to deep-rooted disparities and long-standing inequalities, effectively financing rural education, rural education still faces challenges and difficulties related to handling urban-based curricula and evaluation standards, recruiting, and keeping qualified teachers, and the outflow of original rural residents. This article concludes by offering an explanation of Chinese policy implications for the functions and constraints of state-directed rural education in serving urbanization.