The dissertation examines institutional linkages between corporate governance and employee participation in the process of decision-making at corporate level. The institutional linkages include the Board-level participation (the board of director and board of supervisor), the worker council (the worker congress) and the trade union. With exploring the major four channels of employee participation system, this dissertation argues that with the influences of "shareholder values" although there is comprehensive participatory system, those institutions are just formalities. After finding out the status quo of the employee participation in China, the paper also provide some possible suggestions for the four major channels through which Chinese employee participation can be improved, based on the analysis of the OECD corporate governance principle and experience from the member states of European Union. Key Words: employee participation; corporate governance