After 30 years development, not only economic scale was historic changed but also the quality was greatly improved of NGEs in China. There is much evidence that proves NGEs' achievements today were closely related to continuous transformation and upgrading. This article analyzes determinants that affect the transformation and upgrading of China's NGEs from five aspects, which include entrepreneurship, resource endowments, institution, technology, and market environment. On this basis, further policy recommendations to promote NGEs transformation and upgrading were raised in this article. <<