This research analyzes the business cycle of China’s economy from 1980 to 2019. The main finding is that before the global financial crisis, shocks to efficiency, capital, and government expenditure can all contribute to the fluctuation of the business cycle but after the crisis, these relations suddenly disappear. This change may reflect the changes in the logic of China’s economic development that before the crisis, the economy was mainly influenced by the economic reforms pushed forward by the central government, while the global financial crisis changed this pattern, and the new pattern has not been observed by this research.