Where there is a doctrine of the morally good to be blessed or rewarded, there is a conflict between theory and reality, for in reality it is not necessarily so. This problem, often called “the problem of evil” or of “theodicy” in Western tradition, is a universal one, but its existence in Chinese tradition has somehow been neglected by Max Weber and by later Sinologists. This article argues that this problem was not only present throughout Chinese intellectual history but also widely discussed among the educated elite particularly in the Han-Wei and Six Dynasties; and that such a problem, as a corollary of what Weber calls “rationalization,” was generated by the notion of moral determinism which can be found in Confucianism, Taoism and Chinese Buddhism. In this article, all solutions to that problem are categorized into two groups, namely, “moral deterministic answers” and “anti-moral deterministic answers.” Debate among the elite and the significance of the debate in Chinese intellectual history are also analyzed in this article.