Abstract:The rise of western Europe and the lagging behind of China in modern times are caused by different incentives basically resulting from geographic condition to commodity market development. The basic reason for the rise of Europe lies in market expansion, the reason for market expansion results from big product difference and low waterway transportation cost based on geographic condition, so as to further form the incentive to the exchange of the basic products of agriculture, forestry, animal husbandry and fishing industry, therefore, economic man nature makes the people make efforts to develop commodity market so that market-oriented economy develops. China’s geographic condition results in small product difference and high highway transportation cost between regions to further encourage the self-use of Chinese basic products of agriculture, forestry, animal husbandry and fishing industry, therefore, economic man nature makes Chinese people adjust product structure to meet the self-demand so that Chinese commodity market stays at narrow or shrinking state for a long time.