Modern China's cultural transformation has been a long, torturous, and complex process that even now has yet to come to a conclusion. Previous publications on China's intellectual and cultural history have touched on this issue to some extent, but there have been few wide‐ranging, focused, and systematic studies. This article is based on the author's systematic research into this question and argues that the Chinese people, burdened with the weight of a long history and with deeply ingrained cultural traditions, must negotiate the complexities and uncertainties of the present as they adapt to a new era and build a new culture. Questions of culture manifest themselves in many different ways: in distinctions between Eastern and Western culture and between “Chinese” and “barbarian”, in the different resources and possibilities inherent in ancient and modern culture, in the fate of China's ethnic minorities, and in the relationship between material and spiritual “civilization”. In addition, social conditions can pose almost insurmountable problems in the process of cultural transformation. These problems can only be solved when the whole nation is engaged in the practice of study and struggle, and the cultures of the world become more intimately linked through communication and the flow of ideas. Even then, solutions will not be quick in coming and the process of cultural change is necessarily gradual in nature. The transformation of China's culture in recent times and the modernization of the country as a whole are fundamentally concurrent processes that show a marked tendency towards globalization and individualism. Thus, externally, China must adhere to the idea of greater cultural openness while, internally, we must support the liberation of the people, and foster a positive creative spirit to the fullest potential.