During the transition period in China，there generally exsit the conflicts of the government as a party. This type of conflict is based on the public interest. The government promotes economic and social reform and development，which can not be understood and supported by the Public for various reasons. As a result，government-built projects are often hindered and even become the root of all kinds of conflicts. So，how to govern this type of conflict is a very important research topic. However，according to the literature at home and abroad，there is not much attention to this problem. Based on this，this paper takes an example of the management of conflict caused by a public welfare demolition，to explore the appropriate governance mechanism of this type of conflict. This study concluded that the trust mechanism is an appropriate mechanism for conflicts in which the government is a pertinent party. Because the authority mechanism has encountered the crisis of trust and the proper environment of the market mechanism lacks and can’t take effect. However，due to the particularity of the Chinese system，the trust mechanism needs to construct a cooperative governance model which is dominated by the trust mechanism and supplemented by authoritative mechanism and market mechanism. This study not only greatly enriched the existing conflict management theory；It also has important reference value for the practice of government conflict management. This paper points out that the future research direction is to use statistical methods to analyze a large number of similar governance cases in China，in order to form a more universal research theory with guiding significance.