Abstract: The Social Exchange Theory of George Casper Homes provides a general framework to analyze the problems of rational interaction and fair exchange for human beings. Its main meaning includes that exchange is the basic element for social integration, equal value exchange is a basic form for social communication, and psychological satisfaction of reward or utility is the main purpose for people’ s rational action. Based on the perspective of the theory, this paper analyzes the action strategies in the interactive exchange between the Nail Households and the local governments in the process of land acquisition and demolition, such as the image of safeguarding rights, delaying tactics, leapfrog petitioning, media exposure, judicial proceedings, and then puts forward the following systems of reform and innovation: shaping the“ down-looking” political ecological environment, balancing the rights and responsibilities for the subjects of land acquisition and demolition, establishing a fair compensation mechanism for social exchange and standardizing the behavior of the Nail Households and the local governments.