Abstract: The CPC’s understanding of the relationship between government and market goes through four periods: the government determinism, the market utilization, the market basis and the market determinism. Accordingly, Chinese labor policy also goes through four stages of evolution: the marketization by phases and dual track system, contractualization, legalization and the flexicurity. The evolution of labor policy in the centenary history of the CPC shows that the relationship between government and market determines the labor policy. In order to build the new development pattern we should innovate the labor policy. Firstly, upholding the leadership of the CPC is the fundamental guarantee for the cause of socialism with Chinese characteristics. Secondly, correct understanding of market position is the logical starting point of clarifying the relationship between government and market. Thirdly, promoting the combination of the efficient market and the promising government is the path dependence of labor policy making. Lastly, promoting the perfection of labor policy is the main way to develop labor relationship with high quality.