Taking Hongchuan Village in Hongsibu District of Ningxia as the research case, this paper systematically analyzes its exploration of a rural industrial integration and localized development path with western characteristics against the backdrop of weak industrial foundations, difficulties in increasing farmers’ income, and underdeveloped market conditions.Relying on the collaborative mechanism of government planning and guidance, project-driven integration, enterprise operational empowerment, farmer participation and benefit sharing, the village has blazed a distinctive development path.The study finds that local governments have played a pivotal bridging and catalytic role in industrial development. By accurately identifying local resource endowments, scientifically defining and fostering leading industries, coordinating infrastructure and public services, and targeting the introduction of market entities, local governments have established an institutionalized collaboration mechanism featuring clear rights and responsibilities, risk sharing and benefit sharing among the government, market players and village collectives. This has realized a virtuous cycle of village collective income growth, resident employment expansion and industrial advancement.This practice has not only formed a government-enterprise-farmer collaborative model that integrates exogenous guidance and endogenous activation but also facilitated the vertical industrial chain integration and spatial industrial convergence of Hongchuan Village. The model also embodies the governance characteristic of overall planning-oriented industrial operation. It provides empirical evidence for understanding the interactive relationship between government role positioning, market embedding and rural endogenous development and offers reference implications for similar regions to advance rural revitalization by leveraging institutional advantages.

Project system, as a grass-roots governance model, is one of the most important means of financial transfer payment since the reform of tax sharing system,and is also a common means of public governance for government departments at all levels. It has important practical significance for meeting the needs of grassroots public services and promoting the national public interests, and plays an important role in consolidating and expanding the effective connection between poverty alleviation and rural revitalization. However, in the whole cycle of project implementation, governments at all levels play an interactive game between resource allocation and policy objectives, resulting in difficulties such as insufficient project planning ability, performance appraisal mechanism limiting county-level project allocation, local debt expansion, imperfect supervision mechanism, weak operation and maintenance management and protection ability, and imperfect operation mechanism. In order to further study the operation logic, practical dilemma and governance path of the grass-roots project system, the analysis framework of “competition-distribution” two-way configuration is summarized by means of in-depth interviews, participatory observation and case tracking, and the policy intention and the policy mode manifested by the project is studied. Three policy models of market i.e. expansion and long-term vision, selectivity and purpose-creating competitive advantage, regulation and support are summarized, and policy suggestions are put forward for project application and allocation from the aspects of system construction, fund use, industrial development, business environment, budget review, coordination and project allocation.