This paper surveys Fredric Jameson's Marxist hermeneutics and his problematic reading of modern Chinese literature in accordance with his theories of totalization. Taking up Jameson's reading of Lao She's Camel Xiangzi, we will first investigate his "dialectical criticism," a hermeneutic originally set forth in Marxism and Form (1971) and eventually evolving into the three-horizon model in The Political Unconscious (1981). The interpretative method, completely bearing upon historicties, turns futile vis-a-vis self-reflexive works such as Jorge Luis Borges' "Borges and I" or Huang Fan's "How to Measure the Width of a Ditch" for the reason that textual realities of any kind in a self-reflexive story possess no traces of authenticity and therefore allow no access for Jameson's history-oriented model. At the same time we shall discuss how the defects of his earlier dialectical model can be temporarily remedied by recourse to his theories of postmodernism, as elaborated in Postmodernism, or the Cultural Logic of Late Capitalism (1991). Relying on the same concept of totality embedded in the earlier hermeneutic, his postmodernism tends to suppress particularity and heterogeneity in its drive towards totalization. This inclination can also be detected in his attempt to rewrite modern Chinese literary history in accordance with his postmodernist framework. An understnading of his recent periodization scheme will then enable us to pursue the various questions raised by his imposition of a totalizing concept on the history of modern Chinese Literature.