The establishment and development of cultural tradition of any nation is related to the level of social and economical development, and to the conclusion of characteristics of the epoch made by excellent thinkers. In China, from the Three Dynasties to now, the cultural tradition of each epoch is the result of a combination of political and economical situation, and excellent thinkers. The excellence of Chinese culture and nationality depends upon the main line of the Confucian thought: the practice of the doctrine of the mean, the emphasis on social relations, the assertion of the union of men and Heaven. Those great thoughts are good cure to the problems in the modern society. The modern is superstitious in science, but forgets the meaning of life and final destination. Their pursuit of materials results in many defects. Now the knowledgeable people all think that the Confucian thought can cure those defects. However, Confucianism as an influential school since Han Dynasty has been regarded as instrumental to ruling. This has brought inappropriate interpretations to Confucianism, and made Confucianism emphasis the unnecessary ritual. In the time of Sung and Ming, much talk of human nature was no use to social improvement and administration, which resulted in the weakness of Chinese modern times. Confucianism is useful to the modern world unless we remove its veil and bring back its real meaning: inner sage outer king, love people, and the Tao of the relation between men and Heaven.