Abstract: Looking back the 25years since China's Reform and Opening up, China would not have achieved so great achievements without Deng Xiaoping's thoughts as the scientific guideline. Dexiaoping's efficiency thought has gone through the whole process of China's Reform and Opening up and it is still influential. So we should understand well the theory and put it into practice, and further develop it as time goes on. This paper tries to explicitly demonstrates the background of forming the thoughts and the connotation of it in order to promote the understanding and the implementation of Deng's efficiency thought.