With the development of globalization,and of high technology,especially information technology(IT),together with the adiUStment of the USA govments policy,New Economy came into being in 1990s in the United States.As a new economic formation. New Economy is informationknowledge economy in essence. New Economy can be divided into two distinctive periods marked off by the September 11 attacks.New Economy has its own characters and we should adopt an objective attitude towards it.