The problems of China’s special transfer payments system have long existed for years, and they are drawing people’s attention in the process of government reform. As there are many different kinds of special transfer payments, each representing different story, “one size fits all” is not a right choice for special transfer payments reform. Instead, China should push the reform through the way of transform, integrate and abolish. In order to reform successfully, China also need to transform government functions and match the government powers and financial resources.