Abstract: Handling the relationship between the government and the market has always been the fundamental issue and core link of China's economic system reform. The process of China's reform and opening-up is a continuous adjustment of the relationship between the government and the market. Currently, there are problems in the market-oriented reform, such as inadequate, shallow, and narrow progress, as well as excessive, deep, and wide-ranging phenomena. From the perspective of history, reality and phased thinking, it is necessary to dynamically adjust the relationship between the government and the market according to the development stage and level. Handling this relationship well is the key to completing China's economic system reform, including adhering to and implementing the Two Unswervingly, building a unified national market, promoting the symmetrical reform of the power and financial resources between the central and local governments, and developing new quality productivity. To further handle the relationship between the government and the market, it is necessary to follow the basic principles and methods which have been proven effective in practice, such as managing well rather than managing too much, finding the boundary of management through deregulation, making efforts in the field of market failure, and taking the deregulation as a grasp to use and regulate the market.
