In the course of the step-by-step perfection of socialist market economy system, the interests relation between the central government and local governments demonstrates new scenes and trend: the local government becomes independent interests and game subject; around the reorientation and resolving of responsibility, right, profit of the economic management, the central government and local governments have been carrying on the game of the interests all the time. To coordinate the interests relation between the central government and local governments, the following countermeasures are suggested: raise the due authority of the central government; strengthen the supervision and control upon local governments; give free rein to the initiative and creativity of local governments; have a clear division of responsibilities and authority between central government and local governments, and make it standardized and legalized; the local governments should respect each other supplement each other by adjusting measures to local conditions.