The real causes that produced the Libor scandal lie in the core of US and UK financial system. The Libor scandal has resulted both from market failure and from government failure. Furthermore, the root of Libor scandal is that U.K. and U.S. haven’t taken on the supervisory duty of Libor in order not to damage their financial supreme hegemony. China should take serious responses in order to protect its financial interests. First of all, Chinese government should further the process of internationalization of Shanghai financial center, and make Shanghai become the main and leading Renminbi capital and money markets in the world. Second, the government should think seriously before it furthers its financial reform, and make a stronger regulation and supervision for foreign financial institutions that have business in China, which would control risks from foreign shock and protect Chinese financial security from damages from the foreign financial institutions. Lastly, China should make a good supervision for Shibor, the Shanghai Inter-bank Offered Rate.