This book presents an innovative economic theory that successfully integrates the "effective market" and the "capable government" into a unified model. Moving beyond the traditional view of market versus state, it demonstrates how these forces can work together organically, drawing key insights from China's economic development story. The work constructs a comprehensive rational synthesis model, assigning balanced weight to both market mechanisms and government action. It establishes corresponding macroeconomic goals and policy frameworks. Building on this foundation, the book offers a unified analysis of economic growth theory and identifies the optimal balance point between government intervention and market freedom. Ultimately, this groundbreaking contribution, rooted in China's successful practice, offers a vital new perspective for understanding modern economies. It positions China's economic model and theory for greater global influence, contributing fresh pathways for development within today's rapidly changing world and the pursuit of a shared future for mankind.