The theory concerning democracy is the focal point of Hsii Fu-kuan's political thought in the last years of his life. From the vantage point of democracy, Hsu reflects on the shortcomings of Chinese despotism. He examines the links between Confucianism and democracy as well as evaluates the achievements and failures of Chinese statesmen. In the meantime, Hsu is concerned about the development of democracy in Chinese politics. He comments on current political events, reflects on the future of democracy in China, and tries to learn from the experiences of the West in practicing democracy. It is his hope that he can put forth a better democratic institution. From Hsu's views on democracy, we are able to see a new development of statecraft theory by a contemporary Confucian as well as the 'esprit of a great master. Finally, I point out we must devote ourselves to the examination of democratic institution and the stortcomings of democracy. Moreover, we must also try to clarify the boundaries between law and morality. Consequently, we are able to propagate democracy and to develop further the statecraft learning of contemporary Confucianism.