Through analyzing the origination and evolution of institutions in different stages, this article believes that the origination of capitalism in Europe relates directly to its unique geographical feature. It is the outcomes of European to conciliate the difficulty between trade and war. It generates communism that the industrial society is advantageous to the traditional agricultural ones which actuates the latter ones to transform from agricultural to industrial society. Fascism is the German’s effort to get rid of the control from traditional powerful countries to get its own political status. China has to protect its citizens’property right because it is the necessary condition for market oriented economy, and this is the crucial policy for its latter reform. |