Since the transition, the development of China's non-state economy has contributed to the expansion of the number of economic growth. This is because the economic non-nationalization reform as a system of innovation, is an incremental reform. This kind of reform made the interest of the system under the unaffected conditions, the realization of the Pareto type of growth. However, the development of non-state-owned economy did not improve the quality of China's economic growth. This is because the development of China's private enterprises are generally too much emphasis on profit as the center, ignoring the environmental costs, and because of financing difficulties and other factors led to the weakening of its technological innovation capacity; Second, China's foreign investment not only in the diffusion of technology and management innovation The effect did not achieve the desired effect, and the increasing processing trade through the transfer pricing so that the Chinese economy can not fully enjoy the export growth brought about by the profit contribution.

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