The management of urban reconstruction is a process of game between the government and developers.It is helpful that the interest and its equilibrium for the relative parties involved in the reconstruction process are considered during the formation of government policy.This paper analyzes the environment for the policy constitution and establishes a model for strategy making based on the game theory.This model provides a basic foundation to improve the management ability of the government in the reconstruction process.Finally,in this paper some strategic issues are suggested to cope with the challenges from urban reconstruction in China.