The paper employs M-form and U-form organization theory to analyze the structural innovation of government governance, and tries to study the resources integration and economic performances among different cities in a metropolis circle by using the example of Wuhan metropolis circle in China. Specifically, we focus on analyzing the difference between economic performance before and after the formation of Wuhan metropolis circle. The research result shows that, on the one hand, the formation of Wuhan metropolis circle can make full use of the U-form organization; on the other hand, different cities also benefit from coordinated regional development and rational resources allocation thanks to the formation of metropolis circle. Furthermore, each city has individual characteristics and complementary to other cities. Consequently, the economic performance of theses cities greatly differs from each other.