Abstract: This study analyzes the current status and the existing problems of transfer payments to the national governance division of Chinese medicine projects, then it describes the “Chinese Medicine Law(Draft)” on the division of powers of Chinese medicine projects.On this basis,this paper mainly discusses two issues,namely the critical points of the power allocation as well as principles.Based on the “Chinese Medicine Law(Draft)” ,it also constructs the framework for Chinese medicine projects’ governance.Finally,this paper also gives the suggestions for Chinese medicine projects governance performance management, such as improving transfer payments proportion, making the hierarchical allocation of funds to be reasonable, refining governance project expenditure and so on.