Abstract: Vernacular Chinese grammatology in the early twentieth century has, in effect, helped to popularize the new literature. By integrating his own experience in writing and teaching, and knowledge in grammatology, syntactics, rhetorics, literary theories and other disciplines, Hu Huaichen has constructed a set of writing theory in vernacular Chinese. Hu Huaichen has cleared the difference between literary and non-literary style through borrowing from modern western language and literature concepts to highlight the aesthetic pursuit of the new-vernacular literature; on the other hand, his writing is based upon Chinese culture and follows the aesthetic principles of the mother tongue. Hu Huaichen's writing in vernacular Chinese has opened a new creation path for new literature, that is, accommodation of the new and the old, fusion of the west and the east.