Abstract:The history of literature outlined in Liu Xies Literary Mind and Carving Dragon is not just a collection of various separated literary phenomena, but the outcome of natural law, for literary history is never separated from literary law. Lius attitude is expressed in his discussion of style, literary rules and variations in “Tong Bian”. It is true that reaf life teems with incidents outside literary rules. As the background factors of literary creation, particularly the mundane aspirations of the ruling class as well as the worldly effect resulted from the ups and downs of a period, these incidents are another type of factors that Liu can not afford neglection when he reviews the development of literary history. In literay history, times characteristics as a factor are nondecisive; they are decisive only when they coincide with the righteous Way, whose eternal character is already a negation of the characteristics of times. The law of literary development thus is the only motor of the history of literature.