This paper examines the evolution of Chinese literary criticism during the “Seventeen Years” period (1949-1966) within the broader context of 20th-century nation-building. It traces the shift in critical focus from ideological to class-based enlightenment, highlighting the emergence of left-wing literary discourse as the dominant critical paradigm. The study argues that this period saw the development of a revolutionary literary theory system centered on Mao Zedong’s thoughts on literature and art, which laid the groundwork for contemporary Chinese literary theory and criticism. The research identifies three key characteristics of literary criticism during this era: modernity, dialogic nature, and affinity with the masses. Despite the challenges posed by political leftism, this period witnessed significant efforts to construct a uniquely Chinese system of literary criticism. The paper contends that these efforts, though sometimes fraught, yielded valuable experiences in developing a distinctively Chinese approach to literary analysis. Central to this study is the exploration of the people-oriented focus in literary creation and criticism, which is posited as the core tenet of the socialist literary and artistic ideology.