During the social transformation in China, large number of collective conflicts becomes the biggest challenge and threat to the Party state. In a strong and undemocratic state, how are the collective conflicts managed and resolved? To what degree does the government intervene in community conflicts settlement? Is there any variation in the way of resolution among different levels of conflicts? Based on the empirical study in Shanghai communities, this study shows that the severe collective conflicts would be dealt with by forcing; the middle level collective conflicts or when the conflict’s intensity begins to decrease, it would be managed in ways concerning more for people, forcing and compromising are preferred; the common level collective conflicts will be managed by problem solving, aiming at maintaining and recovering interpersonal relationships in the community. Particularly, when the government is involved in the conflicts, more chances for the government to intervene in the mediation process and use repression to solve the problem; while for common conflicts which have nothing to do with the government, mediation institutions would have more freedom to manage and resolve them independently.