With the rapid development of China’s economy, Chinese government pays great attention to its macro.economy, especially to the pricing issues which are all important to the national economy and the people's livelihood, pursuing to have its macro.economy under control, keep the general pricing level stay reasonable and maintain the society’s harmony and stability. China’s Price Law has been in implementation for more than 10 years, and its practice has proved that Chinese government has successfully realized the preset targets in price regulation by government’s timely intervening in the illegal market activities and undesirable price fluctuation. Based on China's experiences in price regulation and its price formation mechanism, this paper makes a research on improving and perfecting China’s legal mechanism of price regulation. Examining the effects of Chinese government intervention in abnormal price fluctuation and analyzing the legal obstacles in the regulation and intervention, we may find out some constructive way to improve and perfect China's price regulation system, thus achieving the preset targets. Therefore, with a scholar’s rigorous attitude and pragmatic spirit, exploiting the basic theory and knowledge of economic law, citing a number of leading materials and cases, while fully affirming Chinese price reform achievements, we have tried to demonstrate and clarify China’s price regulation system and its mechanism. This paper, which mainly includes the following three parts: perfecting the price law, coordinating the system of keeping the general price level desirable, and strengthening government price regulation and law enforcement system, has inspected carefully the targets in China’s price regulation. After revealing the legal obstacles in new situation, as well as the tasks and challenges confronted in Chinese price reform, it is put forward to perfect China’s price regulation system. It is hoped that, by learning from China’s successful experiences and lessons, by comparative study on the theory and practice in China and South Korea, we can get some useful ideas or inspiration in price regulation theory and practice.