Abstract: Stricter regulation is always thought to be the main way against failure of regulation, and to promote the product quality. But when the regulation system was unbalanced, just exert stricter regulation will not work. The regulation system itself should be adjusted. The conclusion shows that approval procedure has a negative effect on quality choice, and supervision has a positive effect. Regulatory system with strict approval and light supervision, will improve the enterprises' R&D costs, reduce the illegal costs, and make enterprises choose to be illegal rather than innovate. Meanwhile, whether the MQS works depends on the supervision.