Further, the end of directional liberalism in China encouraged local officials to expropriate the TVEs. As competition intensified and credit became harder to obtain, the collectively owned TVE sector grew in comparison to the privately owned TVEs. Rural industries today are more tied to their local government and community and have taken on new forms and roles (Huang, 2008). One of the most striking developments has been the rise of “industrial clusters” of small firms both competing with one another and cooperating to form a relatively complete industrial chain. Industrial clusters have also emerged in places such as Brazil and Italy.