The scale of China’s local government debt is increased. China implemented the financial system of the allocation in 1994, the asymmetry of local government responsibility and resource. The financial of China’s local government run difficulty. According to the law of China, raising loan by the local government in China is not allowed. But it had to promote economic, raising loan by the local government in China in other way. However, the local government’s debt in China is accumulated and the local government’s debt in China is appearing.