From 1987 to 2006, the basic research investment has increased by 12 times in China. It seems that Chinese basic research intensity falls into “the trap of low level equilibration”. Based on the conclusion of Aghion & Howitt model (1992) in neo-Schumpeterian endogenous growth theory, from the angle of knowledge accumulation, the problem involving Chinese basic research is made an attempt to explain. In the state of equilibration, a nation’s basic research intensity is decided by the contribution of various types of knowledge to the whole knowledge accumulation, such as, production elasticity of basic research, the elasticity of applied research investment to new knowledge of basic science, learning efficiency of “learning by doing”, etc. These contribution parameters determine Chinese basic research intensity.