This paper aims to probe into Chinese Communist Party's post-1949 policies on regional autonomy for ethnic minorities, and the impact the Tibet issue has on the relations between two races in the autonomous zones. The paper includes four major sections: 1. The background to CCP's theory for regional autonomy for ethnic minorities; 2. The history of regional autonomy for ethnic minorities in China; 3. Factors that create the Tibet issue; 4. The impact the Tibet issue has on the relations between two races in the autonomous zones. This research finds that although the CCP tries to implement autonomy in Tibet, the party still holds on tightly to its rule over Tibet and sets the framework for the autonomy. This paper reviews and evaluates the CCP's ethnic policies, and probe into their impacts on relations between two races in China with the recent development of the Tibet issue.