The central government's third meeting on comprehensively deepening reform was held on June 6th. President Xi Jinping hosted the meeting and delivered an important speech. ANBOUND think tank scholars think that president Xi’s speech suggested that fiscal and tax reform is a long term systematic effort and can’t be completed in a short run. And just because of this, we should focus on our strategic objectives and accelerate the reform push. In order to achieve any progress in deepening fiscal and tax reform in the next phase, the central government should "decentralize power and transfer profit" to local governments and carry on the reform from a path with the least obstacles.