One of the important future reforms is to focus on China central and local governments' relationship. Any idea or action that intends to simplify the central-local relation is likely to jeopardize China’s overall development. The general direction of decentralization reform should be carried on, but there must a good balance between the central and local governments’ interests. Although China is a "Unitary State" which practices the system of “Unified Central Leadership”, the local governments might deviate from the central government’s policies if the interest mechanism is not straightened out.