This paper examines the impact of business-government interaction on governmentsystem satisfaction in transition economy,usinga sample of firms from Pearl River Delta,China.We find thatfirms,who communicate with government more frequently,are more satisfied withgovernment system and policies.We also find that firms’ satisfaction with government policies partially mediated the relationship between business-government interaction and government system satisfaction.Further,we build a matrix showing the relationship between significance and satisfaction of different policies perceived by the firms.The matrix reveals that firms attach higher importance but lower satisfaction to government policies on talent,land,funding,technology,investment,energy efficiency and environmental protection,and market exploration,especially talent policy and market exploration policy which desperately need improvement.To sum up,the conclusions offer guidelines to improve firms’ satisfaction to government system and policiesin transition economy.