The basic socialist economic institutions with Chinese characteristics are the result of the evolutions of a series of economic institutions after the reform and opening-up. The evolution of economic institutions of China is the requirement for the liberation and development of productivity, has obvious market-oriented direction and uses gradualness and systemization promotion strategy to mitigate the resistance. The socialist market economy system is continuously set up and perfected by taking rural economic institution evolution as the sally port and then gradually promoting urban economic institution evolution, by increment reform initiation outside the institution and then gradually starting stock reform in the institution, by initiating policy adjustment and then gradually boosting institutional innovation, by local institutional innovation initiation and then gradually extending to global institutional innovation and by molding real market main bodies and then constructing overall market system and then making effective market rules. Meanwhile, China’s economic institution evolution sticks to the Party’s leadership, socialist road and people’s main body position, and the Party and government sufficiently confirm the institutional changes caused by the demand from the bottom to the top such as family contracted business and so on, actively generalize and scientifically optimize the institutions, and promote the systematic supply-leading institution evolution such as urban reform, state-owned enterprise reform and so on from the top to the bottom. Thus, China’s economic institution evolution not only realizes the change from traditional plan economy institution to socialist market economy institution but also creates continuous rapid economic growth miracle, which greatly liberate and develop the productivity. China should continuously boost the change of socialist market economy institution with Chinese characteristics, promote the high-quality development of domestic economy and the high-level development of foreign trade, boost the formation of domestic and international double-circulation new development pattern, furthermore, raise the practical advantage of China’s market economy to institutional advantage and theoretical advantage to provide the reference for the economic institution evolution of other countries and to provide China Scheme for the perfecting of the world economy operation mechanism.