Recently, American credit rating agency Standard & Poor's said that almost half of Chinese local governments deserve "junk" ratings. ANBOUND think tank scholars believe that such a credit rating is actually exposing credit gap of Chinese local governments, which gives negative indication of bank credit, government bond, and even foreign investment. Chinese government has entered a long period of credit deterioration. With the Standard & Poor's pointing “credit sword” at China, the widespread concern about Chinese local economy in international market will be exacerbated. The competition of future Chinese market will center on market confidence.