The competition for highquality development aims to implement new development concepts and build a modern economic system. In the context of the expansion of local government autonomy, reshaping local government’s competition system and structure is an important content for deepening the reforms in an allround way. Local government competition used to center on GDP and fiscal revenue growth. Now it is oriented toward high quality development. It is necessary to correct the objective function and composition of local government competition with new development concepts through innovations of statistical systems, standardization systems, performance evaluation systems, and policy systems. The reconstruction of effective vertical and horizontal governance systems is a major task of the socialist economic construction with Chinese characteristics in the new era.