Abstract: The paradoxical situation of the coexistence of China's economic miracle and the development dilemma of humankind should be explained from the economic development model of China. The gradual reform in the 1980s characterized by the double tracking of planned economy and market economy resulted in the "power plus capital" development model, and the symbiotic relationship between local government and enterprises, which effectively prompted the fast development of Chinese economy and created China's economic miracle. However, the symbiotic relationship between local government and enterprises is facing the North Paradox. As the policy profit is gradually saturated, the implicit defects of the symbiosis, such as economic corruption, environmental deterioration, and frequent violent conflicts, are emerging and largely hampering the sustainable development of social economy. The fundamental approach to getting Chinese social economy out of this paradoxical situation and back to sound development is to expedite political restructuring and standardize governmental powers to remodel the government-enterprise relationship.

Key words: government-enterprise relations, symbiotic relationship, economic miracle, local government, North Paradox