In recent years, the costs of enterprises have been escalated; this includes the rapid increase of labor costs, environmental costs, land costs, raw material costs and others. From March to May 2017, the China Financial Science Research Institute had conducted on-site research and survey on the cost reduction in nine provinces of northeast, east, central and western China. After surveying 14709 sample enterprises, the result shows that the total cost of the sample enterprises accounted for more than 100% of the revenues, and the situation is more serious in the enterprises and state-owned enterprises in the western and northeastern regions.From 2014 to 2016, the total cost of sample enterprises accounted for 101.47%, 101.87% and 101.44% of the total revenue, respectively, and the enterprise cost has exceeded the revenues, indicating that the profit margins of the enterprise had been squeezed to the limit.