Abstract:If the course of China’s modernization wants to accomplish ‘the reform of Chinese national character’ --- an inevitable historical task, it must follow Marxist principle of ‘It is not social consciousness that determines social existence but the latter determines the former’, and build up the premise of recognition on the foundation of practice. Since the Reform and Open to Outsider, Chinese Communists lead the establishment of Socialist market economic system, according to the need of the sinification of Marxism, which has laid foundation for the reform of Chinese national character. Since the basic impetus of the cultural changes lies on the practice of material life and the evolution of social relations based on the material life, while socialist market economy, as a result of industrial civilization and a coagulation of the historical experience of modernization, constitutes the most basic modern economic foundation, and establishes new coordinate for the transition of social culture, as well. It, on the one hand, disorganizes the ‘social existence’ in which traditional system of value identification dominates Chinese life order. On the other hand, it creates modern Chinese cultural consciousness with actual force of social material life, and then abandons old cultural value system. It is certain that a new cultural pattern suitable to modern Chinese social life order will be ultimately set up only if the socialist market economic system continues to develop.