Abstract:The dual-track has been an important period in Chinese economic system reform. This paper analyzes the relationship of firms and the State from the dual-track (planned track and market track) perspective, and believes that the economic track of government intervention was different from firms' internal track. This paper also argues the margin that the rent earnings and cost for the State and firms would be increased with decreasing of the government intervention, and would further raise the total profit of the State and firms.