This book is the first attempt to conceptualize China's central-local relations from the behavioral perspective. Although China does not have a federalist system of government, the author believes that, with deepening reform and openness, China's central-local relations is increasingly functioning on federalist principles. Federalism as a functioning system in China is under studied. The author defines the political system existing in China as "de facto federalism", and provides a detailed analysis of its sources and dynamics in the book. The system is mainly driven by two related factors - in