Since the first nature reserve has been established in 1956，China’s protected areas has accounted for more than 18% of the national territorial area. Some progress has been made in the reform of the national park system，but problems still exist in building the protected area system with national parks as the backbone. This paper analyzes problems facing the national park system reform and privately protected areas construction，outlooks the prospect of privately protected areas in light of their characteristics，and proposes policy recommendations to promote the institutional development of privately protected areas in China. The study concluded that the process of reforming China’s national park system faces conflicts and resistance from various stakeholders，and that there are problems such as shortage of funds，gaps in conservation，and an inadequate property rights system. By introducing public interest institutions，promoting the construction of privately protected area in terms of improving laws and regulations，rationalizing supervisory responsibilities，establishing incentive mechanisms，improving communication and coordination mechanisms，and giving full play to the advantages and roles of public interest institutions etc.，we can improve the management effectiveness of China’s protected areas in terms of new concept input，financial investment，and technical assistance，and provide strong support for improving the governance system of protected areas，improving ecosystem integrity，and guarding the bottom line of ecological security.