Fiscal decentralization in China has been a big part of its move to a market economy. They've changed their fiscal management system a lot, from contracts to tax sharing. The goal of this paper is to look at how this has affected China's growth and spending, and to point out issues with the current system. Some problems include unclear spending rules, big gaps in money between levels of government, and a transfer system that doesn't work well. The government needs to pay more attention to these issues to make sure local governments are accountable and spending money wisely.