In 1998 the Chinese Government has started to construct the 'Community(=SHAKU・社区) as one of important policies. In 2000, the Chinese Government defined the 'Community' as the one comprised by the residents and providing community services within a certain area. In this paper, I will show both theoretical and practical problems mainly depending on my researches in the following four points. 1. The background of the 'Community' is the disappearance of the welfare system which had been provided each enterprise as a result of the reform of state owned company. At the same time the rapid increase of migrant workers from rural regions, the diversification in type of employment, and/or the appearance of new type of demands by residents have promoted such a policy. 2. Whereas the Chinese Government stresses the self governing organization by residents as the nature of the 'Communities', in fact much of them has both function of the bottom of the administrative apparatus and the self governing organization. 3. Much of 'Communities' are providing various social services and methods to include new coming peoples into the each area. 4. Much of 'Communities' have obstacles to carry out tasks expected to them because of the shortage of funds. So it is still necessary for the Government to assist them including funds. Also the development of so called NPO organization would supplement the function of 'Communities'.