The Organization Department of the Communist Party of China Central Committee has issued the notice to enforce the assessment of local government debts, setting local government debts as an important indicator for performance evaluation. From ANBOUND research team's point of view, the diverse cadre performance system is definitely a pressure to the local government officials. How should the local government settle its huge debts has become an assessment indicator that will affect the development of the officials. Next year, the country will witness a new wave of dealing with local government debts.