The causes of the slow development of northeast economy are varied.The key element how to vitalize northeast is to adjust the relationship between government and enterprise.The major problem is that the administrative power takes the place of the economic power even distorts it.That the enterprise power, social power and individual power are replaced with the administrative power is the essence of the planned economy.It is complicated for the Central Government to transfer or break down the power to lower levels, and is of a dynamic game for the power subject to keep the most benefits in the process of China’s reform.To transfer the power hasn’t bred the market whereas, it changes some departments and individuals into beneficial subject instead and northeast suffered worst from planned economy.As a result, in order to vitalize northeast, we must transfer the power to state-owned enterprise, private enterprise even to the whole market. Therefore, we could equal all kinds of market power so as to promote the development of market economy.