Abstract:The relationship between the government and the market has always been a classic proposition in economics discussions. The reality of the operation of modem market economy is that there cannot be a folly efficient market and an omnipotent government in the world, nor is there a standard and perfect government-market relationship. As every country is looking for an efficient market and the organic joint point of an efiective control system, the socialist market economy with Chinese characteristics has its unique institutional advantages in giving full play to the role of an efficient market and an effective government. In the journey of building a modem socialist country in an all-round way, as long as we firmly adhere to the socialist road and the original intention of reform and development, we will surely be able to blaze a path that suits China's national conditions in terms of combining the efificient market with the effective government.