With the gradual advancement of debt-to-equity swap, China's local debts have been steadily cleared; the country’s debt risk seems to be under control. Yet, the debt problem can only become silent but not completely disappear. Many of the current financial headlines are concerned about the GDP growth rate, yet the hidden debt chain is the pillar of GDP. Anbound researchers believe that the debt chain on one hand should be maintained effectively and China should consider balancing it for both short and long terms, yet on the other hand it needs the output of the economy, strengthening its ability to create value. If China only concentrates on maintaining the demand for short-term, it can ensure short-term output growth, yet for long-term its supply-side value creation ability will not be strong and ultimately it would let the economy fall into the vicious cycle of debt.