Drug safety is both technical and social-economical issue.This article introduces regulatory politics theory to analyze the institutional elements of"Capsule Scandal"in China.Social structure,market mechanism and government regulation compose of triple failures dilemma:the consumption structure which pharmaceutical companies embedded in is the main factor leading to non-compliance,especially when regulatory enforcement is not strict enough and economic incentive is weak,violation happens.Policy suggestions including innovation of the whole regulatory system are followed. <<