At the end of last year, Anbound had predicted that in 2017 the Chinese economy may have optimistic performance; the first two months of this year's industrial enterprises profit growth supports this optimistic forecast. The reason is mainly due to accelerated industrial production growth, product prices increased significantly while unit costs showed rapid decrease. However, there are two obvious structural problems. First, the increase of raw material prices has caused the profits mainly concentrated in the upstream enterprises, reducing the profit margins for middle and lower stream enterprises. Second, the profit growth is mainly concentrated in the upstream state-owned enterprises and state-controlled enterprises; this is not an ideal situation for private enterprises' which account for 60% of the investment. If these structural problems can be mitigated, China’s economic growth this year can be well supported.