Considering on the characteristics of the transmission system and some key units of continuously variable transmission system with reflux power, a dynamic simulation model and a control strategy are established. The design method of the new continuously variable transmission system is verified by simulation. The simulation result on this continuously variable transmission system shows that the rotating speed of the driven plate can rise up rapidly during starting clutch engagement, and the sliding friction power is lower than 3 kJ which is nearly equal to onethird of the friction power of the traditional vehicle.