The report of the 20th CPC National Congress proposes to build a regional economic layout and territorial space system with complementary advantages and high-quality development. Therefore, in current economic development of China, it is of great significance to restrain the industrial structure homogenization and promote the diversity development, so as to realize the coordinated development of the whole region. In this research, several macro and micro databases were integrated to construct the panel data of the city level from 2007 to 2021, and the spatial Durbin model was used for empirical test. Then the impact of the local governments’ interactive mode of “race to bottom” in industrial land supply on the industrial structure homogenization were proved and measured. Finally, the conclusions of this study can be summarized as follows. Firstly, at the level of two-digit industry classification code, the difference of urban industrial land supply structure is not high. The land price deviation indicator (LPDI) shows a negative deviation on the whole, which indicates that there is an obvious negative distortion of the industrial land price. Secondly, in the empirical results, the absolute value of WLPDIs’ coefficient is relatively higher than the LPDI, indicating that the degree of the industrial structure homogenization is more strongly influenced by the other cities. The fiercer the competition among local governments to attract investment with the tool of “land price concession”, the more likely it will result in industrial structure homogenization. Thirdly, the land price concession between local governments has a significant impact on the difference of industrial land supply structure, and this impact is different at different time points. If the degree of the “race to bottom” between cities has relieved, the difference of industrial land supply structure will be reduced in the short term, but the difference of industrial land supply structure will be increased in the long term. Overall, this changing will promote the homogenization of industrial development between cities. Therefore, the relevant regulatory policies should pay attention to both individual behaviors and the interactive behaviors between local governments. We should not only see the minute details but also the major issues, and relevant regulatory policies should promote regional coordinated development through coordinated and interactive relationships.