In the new era of globalization and modern technology and facing the new challenges of the new era, every country uses its besrte efforts to speed up the progress of administration reform, government reengineering, organization restructuring and staff streamlining so as to improve its competitive advantages. Whereas school physical education shall not, and cannot, disregard the upheaval of government reengineering. This document means to describe the interaction of power among central and local governments, bureaucratic system and public society. Of course, related cultural factors are also vital to the implementation of school physical education reengineering and, therefore, will be one of the aspects to be discussed in this document. After investigating the four aspects discussed in this document, it is hoped to pont out that reengineering of school physical education has become a compulsory selection in the 2st century if we are to promote the “performance” and “competitiveness” of school physical education are in fact the efforts we make now. Whether school physical education are “lifting up” or “going down” depends solely on the practice of school physical education reengineering.