Chinas Fiscal System: A Work in Progress
The authors argue in this paper that unless China begins to tackle more systematically the serious problems that have emerged in the finances of its various levels of sub-national government the problems to which the present unsatisfactory system give rise will over time increasingly distort resource allocation, increase distributional tensions, and slow down the impressive recent growth of the Chinese economy.
Link
http://isp-aysps.gsu.edu/papers/ispwp0520.pdf