Abstract: Facing the new situation, effective market + capable government is a powerful driving force to further improve the quality of China's economic growth. On the basis of combing the changes in the quality of China's economic growth, this paper expounds China's effective market and capable government. On the one hand, through the gradual market-oriented reform led by the government, the effective market has realized the effective allocation of resources, which is conducive to improving the quality of economic growth. On the other hand, capable government is composed of the central and local government. The high degree of centralization of the central government and the high degree of discretion of the local government have formed a dynamic and orderly situation, which has invisibly improved the quality of economic growth. However, in the process of reform, we also face some practical difficulties: the market environment is deteriorating, there is a different game between local governments and the central government, and there is also an irrational game between local governments. We need to comprehensively deepen reform and constantly adjust the relationship between the market and the government. The new development paradigm with domestic economy and international engagement providing mutual reinforcement, and the former as the mainstay, is growing steadily, resolving the hidden debt risk of local governments, correcting the alienation of land functions, promoting environmental governance, and escorting China's economic growth in the next century.
