Recently the State Council calls for comprehensively cleaning up the preferential policy, so as to promote the establishment of a unified market system, and display the market's decisive role in resource allocation. ANBOUND research team believes that the strict implementation of the policy would change the local competition model. The previous "price-war style" business attraction framework will fail, the soft environment including streamlining administration, delegating power, and disclosing corruption will become the key factors that decide the success of future local competition.