Abstract:GDP is the key and important indicator to measure economic growth at present,however,it does not reflect either the quality of economic growth,or the across-the-board progress of society,or the national wealth level. Genuine Progress Indicator(GPI) covers the social,economic and environmental accounts,and it is publicly recognized as a more effective tool to evaluate the level of sustainable development of a country or a region. The China Study Group of GPI has preliminarily set up China’s GPI system,which will be beneficial to verify thequality of China’s economic development,as well as the genuine progress in those areas of economy,society,resources and ecological environment,through the prosperous economic scene shown by GDP. If GPI is taken as a supplement and perfection for GDP,and as additional indicators for inspecting the performance of each region,it will be advantageous to assist decision-makers at all levels to adjust the strategy and measures in a timely manner in order to achieve gradually the goal of implementing authentically the Scientific Outlook on Development and building a harmonious society.