The Chinese academic circles made deeper reflections on the Chinese literary theory (or the study of literature and arts) during the late 1990s and the early 21st century, as post-modernism and Cultural Studies (the discussion of "Aestheticization of Everyday Life", in particular) rose in China. Chinese literary theorists began to make reflections on a number of issues, including the expansion of literary theory, literary aesthetics and autonomy, and the relationship between literary theory (intellectuals included) and reality. This chapter investigates these issues one by one.