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TD-LTE as the evolution of TD-SCDMA is designed to support high data rates and reduced radio link delays. To reach these goals, new air interface is specified for TD-LTE. In this paper, the performance of physical uplink and downlink channels are evaluated by means of numerical simulations. Since the deployment of smart antennas is the unique feature of TD-SCDMA, special attentions are paid to the case of TD-LTE with dual-polarized smart antennas scheme, which can greatly facilitate practical application by smaller antenna array size and better stability relative to traditional mono-polarized smart antennas. The error performance is simulated for multiple physical channels with both mono- and dual-polarized smart antennas, and the simulation results on link level show that the dual-polarization scheme pays slight penalty of signal-to-noise ratio (SNR) loss, but brings significant benefits to practical application. It is intensively recommended to deploy the dual-polarized smart antennas in TD-LTE.