Taking legislative process of Property Rights Law in People′s Republic of China as an example of China′s gradual institutional change,this paper analyses the historical and cultural backgrounds of the China′s gradual institutional change from custom of rural society,dual rules,traditional value-view and laissez-faire peasantry economy.

The institutional transition can be divided into fundamental institutional arrangement and secondary one from level, compulsory institution transition and induced one from subject, institutional transplantation and institutional innovation from approaches, gradual institutional transition and radical one from mo.