Starting from current China’s economic reality with the background of resource bottleneck and system bottleneck, this paper reveals the logic relationship among such measures of reform as streamline administration and institute decentralization, market activation, new policy for private enterprises, urbanization, Beautiful China and Chinese Dream. Combined with the regulation and control on the real estate market and the stock market, this paper discusses the ideas about the policy to break out of the current phase of the political and economic cycle. This paper also forecasts the future of both the rising of the emerging industries and their transcending of the system transition trap. In sum, this paper indicates the theoretical connotation, strategic objectives, logical steps, basic approach and mark of success for China’s economic upgrading.