The reform of the division of fiscal power and expenses among the Chinese central and local governments is an important part of the country in advancing the reform of the fiscal and taxation system and establishing a modern financial system. On February 8th, the General Office of the State Council formally issued the "Proposal for Reforming the Plan for Dividing Fiscal Responsibility and Expenditure of Central and Local Finance in the Field of Basic Public Services", which is regarded by the industry as a major "icebreaking" move in this reform. The program defined the scope of the common financial authority of the central and local governments and formulated the basic national standards for the protection of basic public services.