Days ago, China's State Council launched the No. 25 Document that shelves the clearing of local preferential policies on taxes, and substantially denies the No. 62 Document issued last year. ANBOUND notices that the activity on one hand reveals the State Council’s receptive attitude and practical manner; while on the other hand, it reflects the fluctuation in decision making. Accordingly, part of the preferential policies are allowed to continuously take effect, but the local governments’ financial abilities are under testing in the new normal context.