Summary: The text highlights the development of Chinese literature, focusing on historical figures such as Wang Jung, Shan T’ao, and Yang Hsiung. It also delves into the work of Sst-ma Cu'IEN in creating the Historical Record, chronicling the history of China. The narrative transitions to a discussion on the luxurious lifestyle during the Han dynasty, leading to a sequence of prosperity and decay. The Bibliographical Note provides a comprehensive overview of foreign scholarly contributions to Chinese literature, with key works like James Legge's translation of the Confucian Canon and Professor E. Chavannes' translation of the Historical Memoirs of Se-ma Tsien. The text also touches on dramas, encyclopedias, and the significance of Confucius in Chinese literary traditions.