On how to dealwith the relationship between equity and efficiency, some scholars give p riority to efficiency, while some give priority to equity, and others give balance between equtiy and efficiency. Another group of scholars think that guarantee of equtiy is the government’s duty while market competition can p romote efficiency. We think that the relationship between equity and efficiency should be kep t dynamic balance since it is a social system which needs to be safeguarded by perfect system of public policy.