Although the influence of contemporary Chinese literature has not declined to an incorrigible point as described by some critics,yet elegant or serious literature has been in an awkward dilemma.This paper makes an analysis of the inner and outer factors responsible for the difficulties met with by elegant or serious literature in the way of its development and,on the basis of a discussion over its superiority in competition with itsdeadly enemy-folk literature,investigates the possible ways out of the dilemma.