The National Development and Reform Commission stated that some of the high interest short-term debts can be reorganized via the replacement of low-cost corporate debts. However, ANBOUND research team thinks that it may not be sufficient as the Chinese local debt needs to be strengthened using Alexander Hamilton's way. The key solution for local debts is to control short-term risks and complete the mid and long term local taxation and financing system reform. In this regard, large-scale replacement is more effective than partial replacement.