Abstract: In recent years, some grass-roots governments have promoted the E-commerce industry development in rural areas, shaping regional advantages of digital economy. However, the extensive government intervention literature cannot explain this phenomenon. In fact, there are not only differences in the intensity of government intervention, but also divergent on industrial preference and government-business relationship. Borrowing the concept of “caring government”, this paper reveals the role of the grassroots government in promoting industrial development, who pursues maximum social welfare benefits in new era. Government’s industrial preference guides the allocation of business resources and its industrial role reshapes the model of interaction between government business relationship. Government commitment supports the rural advantages of the E-Commerce industry. This concept improves our understanding in government behavior and industrial development.