Abstract:The paper investigates the relationship between private entrepreneurs' participation in political affairs and their firms development path, and did the firms choose to expend the scales or boost the profits? The empirical results show that with participating political affairs, the scales of the firms expand rapidly and significantly. Comparatively, after the two-year expansion of scales, the profits are significantly higher than those of the comparison samples without political participation. The significance of the test is mainly in the national level, meanwhile the effect of provincial level of political participation is weak. The empirical research on the political strategies of private firms in China is developed and finds that the Chinese private firms whose owners with political participation have followed the important growing logic, increased profitability is through rapid scale expansion.