Currently, China's local governments are undertaking too much pressure. A survey by Anbound’s research team shows that quite a few local governments are borrowing money to fulfill their tasks and as a result, a man-made debt cycle is formed. Facing the twin pressures from both expansion of authorities’ powers and contraction of financial resources, some local governments are poised to give up some of their fiscal power to alleviate their taxation burden. The relationship between the central and the local governments is becoming increasingly complicated.