This paper outlines a brief history of Chinese urban policies during the last half century, in particular describing the ‘State Planning Regulations’ that aim to control urban expansion. But evidence from data analysis on land occupation rates suggests the regulations did not achieve their expected outcomes. In order to reveal the problems, discussions not only about the regulations themselves but also of the contradiction between central and local authorities are interpreted. The core issue is that local authorities need to purchase more land to accommodate rapid urbanization and benefit from land releasing, while the central government is more concerned with sustainability.