Abstract: Policy making capacity is essential to a ruling party. There are two challenges for the ruling party in China: how to set policy agenda democratically，and how to formulate policies scientifically. Basing on an introduction of the reform of British Labor Party，especially its new National Policy Forum，Policy Committees and Policy Development Cycle，three points were suggested to improve the policy making of the ruling party in China: to provide institutionalized channels for public participation in agenda setting，to improve transparency of policy formulation by encouraging moderate public debate，and to innovate think tanks for deliberative policy analysis.