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Modern era

During the Industrial and Modern Ages, Chinese philosophy had also begun to integrate concepts of Western philosophy, as steps toward modernization. Chinese philosophy never developed the concept of human rights, so that classical Chinese lacked words for them. In 1864, W.A.P. Martin had to invent the word quanli (Chinese: 權利) to translate the Western concept of "rights" in the process of translating Henry Wheaton 's Elements of International Law into classical Chinese.

By the time of the Xinhai Revolution in 1911, there were many calls such as the May Fourth Movement to completely abolish the old imperial institutions and practices of China. There have been attempts to incorporate democracy, republicanism, and industrialism into Chinese philosophy, notably by Sun Yat-Sen at the beginning of the 20th century. Mao Zedong added Marxism, Stalinism, Chinese Marxist Philosophy and other communist thought.

When the Chinese Communist Party took over the reign, previous schools of thought, excepting notably Legalism, were denounced as backward, and later even purged during the Cultural Revolution, whereas their influences on Chinese thoughts remain until today. The current government of the People's Republic of China is trying to encourage a form of market socialism.

Since the radical movement of the Cultural Revolution, the Chinese government has become much more tolerant with the practice of traditional beliefs. The 1978 Constitution of the People's Republic of China guarantees "freedom of religion" with a number of restrictions. Spiritual and philosophical institutions have been allowed to be established or re-established, as long they are not perceived to be a threat to the power of the CPC. Moreover, those organizations are heavily monitored. The influences of the past are still deeply ingrained in the Chinese culture.