In order to promote the successful implementation of extended producer responsibility (EPR) in China, the role of government and core producers during EPR is emphasized. Game and strategy optimizing process between government and producer are studied. Static two-entity EPR game model under complete information is proposed. By crossly analyzing the expected benefits in both short-term and long-term, six key affecting factors are identified including cost of government's implementing EPR, punishment for violations, cost for producer to take responsibilities, potential benefits to violate the regulations, eco-image value for producer, and the international market development and promotion. Based on discussion of the influences of the above factors, functioning environment of implementing EPR in China is further studied based on the local environment in China. Suggestions are given accordingly in the end.