Economists always have disputes over the relationship between corruption and economic growth. From the end of 2012 to the present, the Communist Party of China has launched a fierce anti-corruption campaign so that a large number of officials suspected of corruption were investigated. Anti-corruption, however, did not actually promote economic growth. To explain this, we build a framework based on government regulation and mixed oligopoly. The basic views are as follows: First, on the premise of meeting the government's budget balance, fighting against corruption accompanied with removing inefficient regulation is the optimal anti-corruption policy, which will facilitate economic growth. Second, given there are inefficient regulations, lower cost of corruption and superior employment pressure; no anti-corruption is a better choice than anti-corruption. Current Chinese anti-corruption campaigns focusing solely on anti-corruption rather than removal of regulation are useless to economic development. These movements contribute to the development of the state-owned enterprises at the cost of private sectors’ growth. As a result, the whole economic growth has been dragged down.