Since the foundation of P.R.C. in 1949, China has been explored and practiced the constructions of socialism with difficulty for 60 years and has found the ways to construct the socialism with Chinese characteristics. Particularly since 1978, China has achieved the goal of a basically comfortable level of living in the end of 20th century, putting forward a phasic target of constructing a generally comfortable level of living and a harmonious society by 2020 on the basis in the end of 20th century. For this target, China Communist Party and governments in all levels have being committed to create a peaceful, healthy and stable social order and environment when the system of settlements on disputes of china emerged which has been proved the efficient way, after years of explorations and practices, to settle the internal contradictions among the people which is suitable for China situation. The system is showing the preliminary effects and characteristics and has been the routineand important measures to maintain the social stability and achieve goals for China Communist Party, People’s Congress andgovernments in all levels which has been a key part of governing the country according to law.