The economic transformation in China has caused significant changes to labor relations. It has made the labor relations more complex and labor conflicts apparent and frequent. However the coordination mechanism has not been developed correspondingly. Based on the empirical research upon current domestic and overseas labor relations, it is concluded that the supply of labor force exceeding the demand of it is the fundamental reasons for explaining labor conflicts in the economic transformation in China. It also suggested that the coordination mechanism of labor conflicts has mechanical dysfunction and the structure of harmonic labor relations would take a long time. It has made the labor relations more complex and labor conflicts apparent and frequent. However the coordination mechanism has not been developed correspondingly. Based on the empirical research upon current domestic and overseas labor relations , it is concluded that the supply of labor force exceeding the demand of it is the fundamental reasons for explaining labor conflicts in the economic transformation in China. It also suggested that the coordination mechanism of labor conflicts has mechanical dysfunction and the structure of harmonic labor relations would take a long time.