This article explores the facts which rarely be discussed in regional governance by emphasizing the competition of globalization from the perspective of new metropolitan regionalism about state regulation. The inter-urban competition was proved to be the main force to tear down the formation of city-region. This paper pays more attention to the process that shaped the local governments' management and the impact on regional governance. In the case of Teiben Steel Company's tax evasion that happened in April 2004, which illustrated the local governments conducted illegal means in order to prompt their economic competitiveness. That private industry located in the Delta of Yangtzejiang in China. The incident of Teiben resulted in state intervention and unfolded the importance of the role of state in urban regional governance.