The relationship between the government and the market is the logical basis to position the function of the government, but in China “market failure” has its own particularities, which provides a special basis for the intervention from the government. Due to the intervention, the government acted as one of the most important market players, and then it also caused a large number of corruption, which caused people to doubt the importance of the government, so it is necessary and important to sort out and reaffirm the “magic function” of market, and give out some countermeasures to position the function of the government with the latent problems.