The study measured China's fiscal decentralization using financial expenditures and found that overall, China is close to the optimal level of decentralization. However, the degree of decentralization is lower in the western region compared to the eastern and central regions. The gap in decentralization between regions is more pronounced in western China. Over time, China's regions are slowly converging in terms of fiscal decentralization. The focus of future fiscal reforms in China should be on optimizing internal fiscal arrangements rather than expanding decentralization further.