This paper builds a model of general equilibrium for production economies to analyze Chinese enterprise tax reform which regulated the unified enterprise tax rate to be at 25%. The reform was backed by the new Law on Corporate Income Tax executed from January 1, 2008. Using national statistics of 2007, we obtain that the optimal unified enterprise tax rate for manufacturing industries is 21.82% if tax revenue is given. In addition, we find the globally optimal enterprise tax rates are 33.11%, 18