This paper reviews the changes in social and economic policies since 1949 that have significant implications for ecosystem management in China. The major policies relevant to ecosystem management are those related to land tenure, food security, regional development, urbanization, and more recently, a desire for more sustainable development. Three distinctive phases in policy changes are identified. The first phase, 1949- 1978, was characterized by the grain production-oriented policies that resulted in ecosystem degradation; and it was marked in 1958 by a land tenure change that brought all land into collective ownership as a central policy intervention. The second phase, 1978-1998, was characterized by the transition from grain production-oriented policy to natural ecosystem conservation; and it was marked in 1978 by the introduction of the open market and reform strategy that enables households to undertake more independent livelihood activities. The third phase, 1998-present, has been characterized by ecosystem management for sustainability; and it was prompted by the severe floods along the Changjiang River and Songhua Rivers in 1998 that led to large ecosystem restoration projects in central and western China in order to reduce the future risks of severe floods. However, sustainable management of cropland, forest, grassland, and wetland ecosystems as well as protected areas and biodiversity more broadly are still facing great challenges. Management of the environment to generate multiple ecosystem services will need to remain a top priority given China’s land use and other resource constraints, and pressures from urbanization. This paper concludes that continuous support for ecosystem management policies and household-based economic incentives are critical to maximizing ecosystem health and generating a diverse range of ecosystem services. Ecosystem management, including ecosystem restorations and intensive use to sustain generation of ecosystem services, must be fully integrated into sustainable development policies and strategies.