Under the "New Normal" of China's economy, the local governments at various levels that are used to be the traditional system now generally are confusing on how to look for a right path of transition and upgrade. In the opinion of ANBOUND research team, it reflects that the local governments haven’t dramatically changed their way of thinking. During the period of economic transition, local governments are still facing transition problem. The competition among local governments in the future mostly relies on soft environment. In this case, the central government should deeply reform the political system and evaluation mechanism.