In order to face the challenge of the Chinese culture as a ”foreign religion,” Chinese Christians have endeavored to establish a kind of ”Chinese theology,” connecting traditional cultures in China and Christianity from the West. This is how an ethnic identification-based theology came into being. Later it also joined in the efforts to form a modern China. However, as China has become ”modernized,” the challenge that Christianity faces is no longer from Confucian, Buddhist and Taoist cultures but from Modernity. Hence ”Chinese theology” is no longer adequate to answer the new situation. In other words, because these changes have taken place, there is an urgency for Chinese Christians to think about the possibility of a theology which faces the challenge that Modernity poses for China. Thus following this paradigm shift, ”Sino Theology” has presented itself as an alternative approach. This essay gives an analysis of the term ”Sino Theology” proposed as criticism and reflections on the ”Chinese theology.” I will point out the limitations of former approaches, which employed theology as a means of achieving ethnic identification. Modernity has become a much more significant issue than ethnic identification for China, just as it has been for the rest of the world. Modernity is no longer forces a concern to defend oneself from the charge of following a ”foreign religion.” Therefore, as a result of the paradigm shift, the theological reflections of Chinese Christians will break through the barriers of Confucian, Buddhist and Taoist cultures, and provide Christian thinking resources in a more progressive way for Chinese intellectuals.