Ambiguity in policy innovation can be understood as a policy setting with multifarious institutional flexibilities.In the process of policymaking,the decision makers can utilize the flexibilities of institutionalized policies to connect the proposed new policies and the relevant facts of the existing policy systems.In addition,the interactive agents involved also play an irreplaceable role through their mental,cognitive and feedback inputs.Therefore,a policy with certain ambiguities may coordinate the conflicts and goals between agents smoothly,and reduce the risks of the dispensable complexity in the policymaking and implementing process.Township-Village Enterprises(TVEs)are widely considered as a significant reason of Chinese successful gradual economic transition,since it provided a unique buffering effect for the transformation from highly state owned economy to private economy,and accordingly,reduced the uncertainty and political cost of privatization.Nevertheless,the nature of the TVEs always is controversy,and we argue that this reveals the fact that this type of economic organizations took advantage of the ambiguity of new-born term and of the feasibility of promoting rural development,which could be an example of the strategic ambiguity for policy innovation.