There’re essential differences of economic and social system between China and the western developed countries which decides the model of fiscal competition would be different. In this paper, a comparative method is adopted to find the deviations of China’s fiscal competition from the classic Tiebout model. These deviations include the aim of fiscal competition deviating from the utility maximization of local residents, the competitor deviating from a fully-authorized fiscal government and the precondition deviating from free population mobility. Thus some suggestions are put forward to help improve China’s fiscal competition by correcting the competitive aim, developing fiscal autonomy, hardening the soft budget and reforming the Hukou policy.