The Chinese Communist Party (CCP)’s policy toward religion has been guided by the Marxist view of religion, adapted to the Chinese historical tradition and religious culture, and accommodated to the current domestic and international situation. It is the important sector of socialism with Chinese character. Particularly, since the Communist regime initiated the policy of economic reformation in 1980s, the implementation of the new religious policy by CCP has played a significant function for the international and domestic united fronts, which has largely impacted on religious communities in Taiwan. In the first section, the development of CCP’s policy toward religion is divided into the following three phases, the transition from the New Democracy to Socialism (1949-1966), the Cultural Revolution and the early period of Reformation (1966-1982), the Socialist Modernization (1982-); in the last phase, the key concept of religious policy is the “mutual adaptation” between religion and society. In the second section, I discuss the legal regulations and administrative organs related to religious affairs, the latter including the United Front Work Department in the party system and the Bureau of Religious Affairs in the governmental system. In the third and fourth sections, the implementation of religious policy is analyzed upon the three dimensions of the international united front, the united front of ethnic minorities, social control. I take the case of prosecuting the “Falun Gong” sect to explain how this policy is operated.