Fiscal decentralization in Chinese cities varies due to the level of reliance on local businesses for revenue. Cities with more competitive business environments are more likely to decentralize financially. A study of 20 provincial capitals from 1999 to 2016 shows a connection between a city's tax base and its level of fiscal centralization. Cities facing fiscal security concerns tend to diverge in their fiscal and economic policies. This research sheds light on the different growth paths of Chinese cities by highlighting the fiscal challenges faced by local governments.