The period from the New Culture Movement to the founding of People’s Republic of China was seem as the beginning of the construction of literary theory with Chinese characteristics, which has experienced three stages: formulating many programmes, then learning the methods from the West, at last, constructing theories by the own. During this period,it also brings out five key words,that is New Literature, Literary Form, Revolution, Popularization and Realism, all of them have a profound influence on modern literary theory. The current researches on the construction of literary theory with Chinese characteristics in China usually focuses on the topics such as theoretical orientation of modern literature, the interpretation of theoretical rheology, and the interpretation of classical concepts and texts.