With national policy support on industries that produce cultural goods and artifacts, Chinese industries have developed quickly in recent decades. Some cities and their industries are led by the central government, while others are led by the local government. In this paper, the author uses ceramic industry clusters in Jingdezhen city (central-led) and Longquan city (local-led) as a comparative study to illustrate the political power relations of government-led cultural artifact industry development in China. In sum, the excessive emphasis on political hierarchy and centralized control of production management will weaken the cultural essence of the local cultural artifacts. The localized government-led development strategy is positive to preserve the cultural essence and design a befitting local industry development strategy in Chinese cities.