With a capital structure of the two sector economic growth model based on the 2004-2015 of China's provincial panel data as the object, this paper uses the method of quantile regression to study the influence of capital structure on capital embodied technological progress, to explore the deep-seated reasons behind China's "growth paradox". The results of theoretical analysis and empirical research show that one of the important reasons of China "paradox" growth is that capital structure did not change towards the direction of capital embodied technological progress, and that the decline in the proportion of equipment capital to total capital has inhibited the capital embodied technological progress. Based on the above results, this paper puts forward the growth policy recommendations for breaking China’s growth paradox: to adjust the direction of investment, to increase the proportion of capital equipment to the total capital, especially to encourage the introduction of high technology equipment capital, to optimize the capital structure, to improve capital embodied technical progress.