This article examines the state of China's tax litigation mechanism and describes the current pilot reform programmes: the Xiamen Model and the Shanghai Model. The Xiamen Model centralizes jurisdiction and adjudication of three types of tax-related cases (civil, administrative, criminal) within a specialized “tax collegiate panel” of a district-level court in Xiamen. In contrast, the Shanghai Model sets up the specialized tax tribunals within two courts, which centrally handle all first-instance and appellate tax administrative cases across Shanghai. Regarding whether China should establish a tax court, the article presents a dialectical perspective suggesting China, as a low-tax litigation jurisdiction, should carefully assess the cost-effectiveness of resource investment needed.