Abstract: The formation of different literary ideas, is not only based on what people think about the literary formation, but also closely linked with what mankind think about all other things on earth. The article analyses the historical evolution of Chinese literary formation and idea, elaborates the wide and deep change of Chinese literature during the 20th century from ideological content to artistic form, from literary character to literary formation and from production to consumption, etc, and thereby, reveals that just because of this change the Chinese literature has eventually realized the epoch-making historical transformation from classic to modern, i.e. from the old literature to the new one.