Forgiveness and reconciliation are important concepts for Christian faith as well as inter-group relationship. It is an important task for Sino-Christian public theology to relate the Christian understanding of forgiveness and reconciliation to the public issues in contemporary China. This article adopts a contextual, inter-cultural, and inter-disciplinary approach to public theology. It analyzes the issues involving the application of the Christian concepts to the public domain in contemporary China, and makes critical references to the more realistic and pragmatic approaches to forgiveness and reconciliation implied in Confucianism and evolutionary psychology. It concludes with a critical theological reflection that although the Christian proclamations of forgiveness can contribute to the process of reconciliation and peace building, its forthright proclamation and application in the contemporary Chinese context may also subject to political abuse and needs to be balanced by an emphasis on justice as well as a more realistic understanding of human being and politics. It is beneficial for Sino-Christian public theology to take lessons from Confucianism and evolutionary psychology in order to avoid the possible abuse and to make the forgiveness more effective in achieving reconciliation.