It is China's top priority to solve the issue of local government debts in 2014 followed by the release of National Government Debt Audit Results by the Audit Commission. ANBOUND research team stated that the overall findings showed that the local government debt risks are controllable though some are serious. Ultimately, the local government debt is rooted from unsustainable economic development model. Therefore, the development model of local government debt expansion needs to be transformed thoroughly in order to effectively solve the local government debt risks.