Abstract: In modern Chinese, literalism is related to socialism at political and intellectual levels. Intellectually, the change of this relationship can be seen from the perspective of literal economics. When literalism was first introduced into China in the early ten years in the 20th century, the relation between literalism and socialism was external and there was no literal economics. In the following forty years, literalism absorbed social values of fairness and justice into its economic policy, seeking “political democracy and economic equality”. In the second half of 20th century, literalism was remnant in Taiwan, and literal economics trended to turn to liberal economy. Meanwhile, liberal economy was paid more and more attention for its importance to democratic politics. The literalism that immerged in mainland China in the late 20th century echoed this trend. This change had its social and historical causes at home and abroad and was also related to the role of thinkers as well as their thought resources.