Summary: The text discusses the impact of Chinese literature on Western culture, highlighting the rejection of traditional Chinese literature by the Chinese themselves in favor of Western models post-revolution and the adoption of the vernacular language over Classical Chinese. The influence of Chinese literature on Western civilization is explored through the development of fiction and drama, reflecting a shift from oral to recognized literature in Chinese society. The transformation of literary forms and the preservation of Chinese fiction within the oral and vernacular traditions are emphasized, pointing out exceptions like prose tales in the recognized literature. The commercial impetus behind oral and vernacular literature, coupled with the evolution of literary forms and the interplay between different societal classes, illustrate the diversity and impact of Chinese literature on the cultural landscape, highlighting its significance in shaping literary traditions and societal norms.