Meanwhile, in 2003, with the tightening national land policy,3.the central government strictly enforced a land quota system thatrestricts the maximum amount of newly added land used at thesubnational level, but gives local governments enough autonomyto determine sectoral allocation of land quotas within their jurisdic-tions. Under the stringent land quota system, more land has beendistributed to industry when the local revenue base relies more onVAT and less on business tax (Cai, 2011). In order to leave enoughquotas for industrial land, Jiangyin suspended the approval of newZhaijidi in the rural area. As a result, in Jiangyin industrial landincreased by 4.57 times, but the rural settlement only increasedby 1.12 times from 2001 to 2010. During the same period, indus-trial land went up by 2.05 times in Shunde, while rural settlementrose by 1.58 times. In 2010, industrial use became the dominantland use category in Jiangyin and Shunde, and the industrial landarea even exceeded the urban settlement area in Jiangyin