According to the general operation mechanism of “state regulating market and market orienting enterprises” proposed by the Thirteenth Party Meeting, Professor Cheng Enfu started with “natural form” of economic activities, took “free economy and plan economy” and “product economy and commodity economy” two categories as logic initiation and proposed to use “market-state” double regulation to set up “plan-led market economy system” at socialism initial stage. “Market-state” double regulation thoughts denied market determination theory of western neoliberalism, inherited and developed Marx’s “law of distribution of social labors by proportion”, which can provide theoretical guide, operating mechanism and feasible path for solving “resources dislocation” problem, realizing “spatial coordination” and “precision regulation” and so on. “Market-state” double regulation is the economic regulation method which fits for the initial stage of socialism and socialism market economy system with Chinese characteristics, which is conducive to deepening structural reform at supply side, which can effectively enlarge domestic demand, which can accelerate the interactive promotion of domestic and international double-circulation and which can boost circulated transformation and progress to further help construct double-circulation new development pattern at new development stage.