There are four institutional barriers in implementing the independent director system in China: the barrier of corporate equity structure, the conflict between independent director system and board of supervisors system, the barrier of "independence" and the flaws in incentive and constraint mechanism.

The objective of the transitional government, such as growth of economy and lower unemployment rate, avoiding the economic and social hazard, pursuing the maximization of own benefits,lead to a series of institutional barriers on non-governmental enterprises′ credit, tax and entry.

Chinese farmers poverty caused by institutional barriers leads to the fact that much of their labor cannot be compensated with respect to value, and that farmers make great unpaid contribution to the country for a long time.