This paper proposes that Qian Mu (1895-1990) envisions an approach to the modernization of China as a nation-saving strategy that is fundamentally different from that of contemporary intellectuals. At the heart of this approach is the goal of turning all citizens into "new scholar elites." It involves the establishment of China as knowledge industry and the realization of the ultimate ideal in traditional Chinese culture. However, previous studies on Qian Mu's theory of government tend to focus on two aspects: one is his proposition of "rule of the scholar elites," and the other is the essence and philosophy of his exposition on the characteristics of Chinese culture. Little research has been done on Qian Mu's cultural vision behind his ideal for the future of New China from the perspective of the development of modern Chinese intelligentsia and the role they play in the progress of modern society and culture. Therefore, this paper aims to explore this aspect in more detail. Analysis in this paper can be summarized into four major points. In the first place, Qian Mu's ideal of the "new scholar elite" society is one that allows for the development of modern knowledge industry in terms of its aggregate demand for knowledge. The power to define knowledge is open to all members of the "new scholar elite" society, instead of being held by a specific group of intellectuals. Secondly, members of this "new scholar elite" society find self-realization by embedding the self in social norms and relationships, instead of staying away from the society. They construct their public identity through the realization of social justice. Thirdly, led by the intelligentsia of this "scholar-elite" type, the cultural transformation of modern China would be one of acculturation. They believe that the basis of Chinese culture is strong enough to absorb the advantages of Western culture and transform them into their own; this, therefore, would retain the integrity of Chinese culture. Finally, intelligentsia in this "new scholar elite" society must embrace Western culture earnestly as they absorb Western thoughts. This is the most basic attitude to take in order to revitalize China's academic prestige. Qian Mu believes that it would take centuries for exceptional figures to emerge in the Chinese academic circle who can truly sinicize Western knowledge and culture. They would be the fundamental indication of China' restoration in the world's superpowers.