When the Communist Party of China was founded in 1921, its literary theory clearly stood on the standpoint of internationalism. In the 1930s, the Chinese Communist Party’s literary thought changed from internationalism to nationalism and turns through four different stages: challenge, position change, theoretical construction and literary practice. The macro reason for its turn is to conform to the trend of national independence and self-determination in modern China. The microscopic reasons are, on the one hand, the refutation of left-leaning errors within the Party and, on the other hand, the response to the challenge of Kuomintang nationalist literary thought out of the Party.