Abstract
The Chain Leader System (CLS) is a novel concept of industrial development proposed by the Chinese local government. Initially, it was aimed at chain extension, supplementation, and advancement to address the impact of external uncertainties. However, there has been debate about whether political power from CLS will lead to inefficiencies in green governance. This study aims to formalize industrial CLS for green governance. A survey was conducted to assess public acceptance and the validity of CLS in a resource‐based city. The results indicate that CLS, when aligned with green governance goals, effectively corresponds with market rationality and public value. It is evident that CLS represents a collective effort toward effective governance rather than simply extending industrial chains or enhancing resilience. The efficiency of green governance within CLS is influenced by the factors including communication platform, enterprises' carbon sinks and green clustering, citizens' adoption of green transportation, and communication among different stakeholders. This study provides valuable insights for the governments seeking to establish an efficient CLS that aligns with both market principles and well‐functioning government.