This article deals with the situation regarding government policy and traditional performing arts in the People’s Republic of China (PRC) excluding its Hong Kong region. For a better understanding of the situation relevant deve10pment before 1949 (the year when the PRC was established) is also briefly reviewed. The author not only pays attention to government policies directly targeting traditional performing arts, but also examines some easily neglected aspects, such as government policies in general and policies that may not appear relevant to the performing arts induding the policies toward minority ethnic groups in China and their cultures. These policies have substantially affected the traditional performing arts in that country. Not content with simply depicting relevant situations and providing information, the author also analyzes the situation and addresses and discusses a number of re1evant issues concerning such aspects as ideology, modernism, nationalism, commercialism and social transformation.