China's economy is slowing down in the recent years and some strategic emerging industries are encountering difficulties as many of the former leading enterprises are now in huge losses. This not only affects the local tax revenue, but also the local government finance. It also causes local financial crisis to a certain extent. Therefore, the local governments have to invest new financial and policy resources in order to help those trapped enterprises. Why the former leading industries and enterprises are now generally in troubles? What are the risks that facing by the local governments? What are the lessons should the drawn from local governments’ involvement in the industrial construction? These are all very practical issues in development of local economy.