Government Behavior In Industry Transformation Of Resource-exhausted Cities

China boasts a large number of cities with abundant resources which have made a great deal contributions to economic development within a certain period. Meanwhile, these cities have become an important part of regional economy, as well as the driving force behind the development of regional economy. However, as the mineral resources are non-renewable, the advantages that these cities enjoy will diminish gradually for the time being. As a result, it will influence the development of industries which heavily depend on resources. Moreover, cities, running out of resources are undergoing decrease in economy. In the context of scientific development and harmonious society, with the aim to build sustainable cities in the future, from the standpoint of citizens, it is necessary to change the industry development of these cities that are running out resources.The paper takes the Xiahuayuan District in Zhangjiakou, Hebei Province as an example, and then discusses the government functions and practices in the transfer from a city that is depleted of resource. To begin, the paper analyzes the prerequisite of the transformation, which are current situations and the causes. Then this paper explains the objective characteristics of these cities and discusses about the complexity of cost control of this transformation which lead to the conclusion that with government interventions, it is the best practice to break the limited factors that these cities face now. Later this paper also analyzes and discusses the practices overseas. Lastly, this paper puts forward the model that government interventions employed in the Xiahuayuan District case.