This article reviews the three stages of Nida’s translation theory development, as well as the development and research status of functional equivalence theory in China, and points out the limitations of the research focus. The second stage of its theoretical development, namely the stage of communicative theory, is the main content, which is outlined in conjunction with the four-step translation process. Based on the contributions and limitations of Nida’s translation theory, the following conclusions are drawn: the development of theories always has its process, and when evaluating Nida’s translation theory, one should neither fully accept nor completely deny it, but rather take its essence and discard its dross, and develop translation theory based on criticism.