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The division of power and authority between central and local governments has been a key issue about which many scholars have shown great concern. In political and administrative science, it is a theoretical and practical issue of great significance. Since the Third Plenary Meeting of the 11th National Congress of the Chinese Commnity Party (CCP) Central Committee, China has established and carried out a policy of reform and openness that has set China on the fast lane of economic growth and brought about great change. One of the most important components of the reforms of the political, administrative, and economic systems is the transfer of power to lower levels and the adjustment of authority relations between governments. In the 21st century, the development and perfection of the socialist market economic system requires further adjustment of power and a scientific, rational distribution of authority between central and local governments. Further systematic research in this area is of great theoretical and practical significance.