The practice of government purchasing services from social organizations, as a significant form of public service privatization, has become an important measure in China’s comprehensive deepening of reforms. However, as this practice has been further implemented, several issues have emerged, such as low service supply efficiency, inflated costs, and supply-demand imbalances, leading to the withdrawal of some service projects. The occurrence of project withdrawals has raised doubts about public service privatization, prompting questions about whether to continue with privatization or to reverse course towards de-privatization. It should be clearly recognized that China’s public services will unswervingly follow the path of privatization. Withdrawals are merely an adverse selection in the crisis stage of the process of government purchasing services and should be regarded as a possible phase in the privatization process of public services. It is necessary to consider not only how to further scientize and standardize government purchasing services from social organizations to minimize the occurrence of withdrawals but also how the government can quickly take over after a service project is withdrawn to ensure the smooth supply of public services.