Abstract: The development strategy of rural revitalization and the industrial policy of project into villages provide the institutional environment for the development of rural industries. In order to maximize the transformation of policy advantages and strengthen the industrial competitive advantages and political performance competitive advantages within the town, the township government guides the industrial development with the administrative intervention path of "industry selection—industry building". On the one hand, the township government selects industries from three dimensions of industry differentiation, industry and policy fit and industry performance display to establish the direction of industrial development and strengthen the industrial competitive advantage in the region. On the other hand, through the strategic investment of project funds and the selection of development subjects within the system, township governments have launched the construction of industrial highlights within their jurisdiction, and strengthened the competitive advantage of political performance through industrial highlights. The internal constraint structure of financial shortage and assessment pressure has strengthened the institutional dependence of township governments on project resources. The industrial highlights created by township governments through industrial projects continue to attract more external resources to the rural society, and the joint action of internal and external forces has generated the dynamic mechanism of township governments to build industries. The industry building behavior of the township government can create a prosperous situation of rural industry development in a short period of time, but it may lead to the potential risks of shangualism and suspension of grass-roots industrial governance.