The first decade of the new century is a "golden stage" as far as China's social policy development is concerned. After the "state-unit" model under the former planning system and a weakened model in the first two decades of the reform era, China's has made a major adjustment in social policies in the new millennium by stepping back from a pro-market model and having more state intervention in securing people's well-being to overcome market failure. As a result of the decade-long social policy development, China has established a comprehensive social policy system with a noticeable increased benefit level, which has played a larger role in securing and improving people's well-being. Nevertheless, to achieve the goal of a "Moderately Prosperous Society", further improvements can be made in China's social policy system, including further elevating the overall benefit level, encouraging participation of non-state sectors, and increasing equality of the system. This paper offers important policy suggestions for further developing China's social policy.