China's political system has been characterized by two institutions since the 1980s: an explicit “layer-by-layer administrative hierarchy” and the “appointment of cadres one level down.” There have, however, been two departures from these administrative practices. First, some provinces have “empowered prosperous counties” by placing them in a dual-reporting relationship with both prefecture-level cities and provinces. Second, some provinces have restored personnel control going “two levels down” by appointing key officials at the county and urban district levels of government. These deviations evolved as responses to China's GDP-centric policy environment during the early reform era. Based on field interviews and nationwide analysis of city-level personnel data, this article argues that such adaptations have generated unintended conflicts between provinces and prefecture-level cities. While prior studies of evolutionary change in China highlight the relationship between state and non-state actors, this study demonstrates how interactions among state actors themselves may fundamentally transform the dynamics of administrative governance.