The development of urbanization in China has changed from a traditional form of urbanization that focuses on the rate of growth to a new type of urbanization that stresses improvements in quality. To evaluate this new type of urbanization, this paper constructs a system that looks at the four dimensions of economy, population, society, and environment, and then, using provincial-level panel data, employs a dynamic spatial panel model to empirically test the ecological effects of the new type urbanization. The study finds that the new-type urbanization in China increased gradually from 2003 to 2017, focused on improvements to the ecological environment, and displayed obvious inter-provincial differences. Moreover, China's new-type urbanization has not only effectively reduced pollution emissions and improved energy efficiency but has also been significant in terms of its ecological effect. Moreover, economic urbanization, population urbanization, social urbanization and environmental urbanization exhibit the obvious ecological effects of “pollution reduction and efficiency improvement.” In the process of this new type of urbanization, both the government's “severe constraints” on pollution emissions and the active introduction of foreign capital are further important avenues that lead to achieving “pollution reduction and efficiency improvements.”