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Shenzhen is a city that is highly representative of China’s rapid urbanization process. As the city rapidly expands, there are enormous challenges to the sustainable use of land resources. This paper introduces the evolution of urban land expansion and the sustainable land use policy of the Shenzhen Government since 2005. The policy covers the reduction in rural-to-urban land conversion, the delineation of urban growth boundaries, arable land reclamation and the establishment of farmland protection areas, urban redevelopment, and the investigation and prosecution of illegal construction. This paper considers the aspects of urbanization and land management systems that are unique to China. The current top-down indicative and mandatory mode of control, which relies on the central government, has very limited effects. Good results were achieved in Shenzhen for the following elements: governmental self-restraint, governmental identity change, and policy innovation. Shenzhen’s sustainable land use practices can provide a reference for other cities in China.