Recently, there are many cases of false reports of outdated industrial capacity to obtain compensation fund. Regarding this, Anbound research team believes that as the central government increases for its anti-corruption intensity, local government officers has less channels of corruption therefore reduction of the surplus industrial capacity has grabbed their attention. The cases of false reporting of outdated industrial capacity to obtain compensation fund has the direct consequence of inability to find out the actual scale and effect of surplus industrial capacity reduction. If review tests are conducted, it is likely that a lot of production cannot really be eliminated.