Environmental and economic data in the years 1986-2006 in Qinghai Province of China are selected. Based on Environmental Kuznets Curve (EKC) theory, models of per capita GDP and four environmental indices are established by SPSS software. Economic development level and environmental quality of Qinghai Province are simulated. Research shows that relationship between economy and environment of Qinghai Province does not completely accord with U-shaped Pattern of EKC. Fitting curve of the emission of industrial wastewater shows positive "U"-type, that of waste gas shows the right half of the U curve, and that of SO2 and solid waste shows a "U + weak inverted U"-shaped curve. Result also indicates that water environment and air pollution of Qinghai Province are further deteriorated, and the SO2 and solid waste emissions have shown a weak turning point in recent years. Suggestion of improving environmental quality is put forward, as well as optimizing the economic structure, adjusting the industrial structure, increasing investment in environmental protection, developing the comprehensive value of industrial waste actively, and raising people's awareness of environmental protection.