On the lower stage of economic development, factors of production -land , capitall and labor promote obviously economic development, but when total economy grows to a certain stage, extensive mode of production restricts seriously economic development;factors of technology , system innovation and economic management play more and more important role in economic development, i.

The exporting companies,over-dependent on the export rebate in our country,produce the export goods in the way of extensive-like reproduces,and result in the fact that science and technology innovation is insufficient,domestic economy works intensely,the trade dispute is happening with increasing frequence,and the pressure on the exchange rate of RMB is increasing.

Promoting the extensive economic growth mode change, in October 2005 through the "CPC Central Committee on the National Economic and Social Development of a proposed five-year plan" an important component of the "11 th Five-Year Plan" period for China s economic development is facing the most serious challenge and the most urgent task.