This study is driven by the emerging phenomena in China’s urbanization: shrinking cities, rapid land urbanization of “ghost cities”, and high-debt cities. How do cities shrink in rapidly urbanized China? Why are local governments in China actively engaging in land development even if the population is shrinking to generate “ghost cities/towns”? Why do cities keep borrowing and accumulating high debts? The market-demand based theories can hardly explain these unique urban phenomena. Therefore, this study focuses on the “supply-side” stories, which is the core piece in China’s “state-led” urbanization. I draw theories from state rescaling and develop it by examining its asymmetric features in policy domains and territorial dimensions in China’s context.