Abstract: Under the long influence of planned economy system, Chinese railway system has the characteristics with the combination of government and enterprise, uniformed operation management, the monopoly of nature and administration, they are harmful to the social common benefits.Its market role, economic characteristics, dignities of natural monopoly and administration monopoly were analyzed.The necessity and possibility to break down the railway situation of unique monopoly in order to adapt to the demands of marketing system and deep economy system reforming were studied.It is pointed out that breaking down the monopoly needs to wipe out the combination system of government and enterprise, form the competition system depending on fast rail development, fasten the reform of railway investment system and ownership construction, creat the firms according to market company system, and loosen the governmental control on the tariffs.