This paper examines how the Chinese government reduces economic disparities across regions and industries through the mean of tax benefits among enterprises. This paper applies multiple regression, which proves that the Chinese government imposed favorable effective tax rates (ETR) on the technology industries in Eastern areas and plantation industries in Western areas at the expense of other industries located in the Central and Northeast areas. This result has several implications. First, the government tried to achieve political stability through its fiscal policy, facing a fundamental dilemma such as farmers' movements against high fee burdens and the political dissatisfaction of minorities in Western areas in China. Second, as the tax is favorable for high-tech companies in Eastern areas, the investments of high-tech companies in these areas is more effective than in other areas.