.. The importance of land income in municipal budgetary revenue stood out initially in
coastal cities and then diffused into the interior. A significant relationship in an inverted-U shape is found
between the ratio of land conveyance traded price to municipal budgetary revenue and the level of urban
economic growth. Contrary to the popular theoretical perception of a state “hollowing out” to make
room for the market under neoliberalization, the Chinese state is found to have reshuffled and transformed
itself to embrace and take advantage of the market.