Abstract: The current economic situation in China is challenging due to the epidemic and external economic impact, but more importantly, it faces three critical changes that have gradually accumulated in recent years and exerted a profound impact: (1) major strategic changes of China and the United States; (2) excessive, frequent, hasty, and extreme government regulation and policy change; (3) deviation in conceptual factors and the orientation of public opinion. To properly respond to these major changes, we need to return to common sense and benchmarks, to history, logic and practice, and once again to the ideological enlightenment about market economy. Whether it is to stabilize the overall economic and social situation, promote high-quality development and common prosperity, or to achieve the Chinese path to modernization, it is more crucial to rely on the cornerstone of good business institutional environments and institutional arrangements, rather than changeable, volatile, and ever-changing government policies. The market-oriented, internationalized and law-based reform and opening up and its institutionalized measures conducive to economic development are the key to boosting confidence, increasing trust and stabilizing expectations. It is necessary to fully understand the critical importance of economic construction as the central task and reform and opening up, as well as the importance of social ethics in the market economy, and properly handle the relationship between government and the market and between government and society, so as to promote the Chinese path to modernization and achieve high-quality development and common prosperity.