Rural industrialization is one of the core drivers of urban and rural spatial evolution and economic transformation in China. Given the background of stock and reduction planning, the development of rural industrial land, which has long relied on land inputs to increase production and inefficient expansion, is facing severe constraints and challenges. How to improve the spatial performance of rural industrial land and promote industrial upgrading and intensive land use have become vital issues for the healthy development of rural areas. This paper draws upon smart shrinkage theory to provide an analytical framework for the intensive-use-oriented performance evaluation of rural industrial land, unlike the evaluation method of efficiency orientation for industrial land, which emphasizes the core goal of the input and output of production factors per unit area. Based on the analysis framework, this study explored the parcel-microscale performance evaluation methods for rural industrial land, and the evaluation index system construction covers the four dimensions of economic performance, social performance, ecological performance, and land use structure performance. Wujiang District of Suzhou City was used as a case study to carry out a comprehensive performance evaluation and analyze the differences in RILP in space and industry. Based on the evaluation results, the key problems of rural industrial land were identified, and corresponding optimization strategies for rural industrial land are proposed from the aspects of land use control, spatial agglomeration, and industrial upgrading. This study intended to address the current major national strategic needs and solve the real dilemmas faced in the process of rural industrial land development. It is hoped that the study will provide a theoretical reference for the transformation of rural industrial land and policy-making for rural revitalization.