Over the past 40 years of reform and opening up, China’s economic development has achieved remarkable results recognized worldwide, in which local governments have played a crucial role. For local governments, their main incentive mechanisms stem from two aspects: administrative and economic. Promoting economic growth is the primary way to fulfill performance appraisals and expand financial resources, so governments make all efforts to accelerate economic development. Inter-local government competition has played an important role in promoting the formation of a unified national market and in continuously improving economic accessibility. Meanwhile, local governments’ behaviors remain consistent with the decisions of the central government. They can take joint actions, form policy synergy, promote the implementation of policies, and address a series of issues—all of these actions are conspicuously embodied in the continuous improvement of China’s political governance cohesion, thereby driving China’s economy to achieve long-term sustained and high-speed growth.