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 a incremental reform. This kind of reform achieved the growth of the Pareto type under the condition that the interests of the system were not affected. However, the development of non-state-owned economy did not improve the quality of China's economic growth. The reason is that China's private enterprise development is 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 technology and management innovation Of the diffusion effect did not achieve the desired results, and the increasing processing trade through the transfer of pricing so that the Chinese economy can not fully enjoy the export growth brought about by the profit contribution

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