How to apply an analytic approach to Chinese philosophy has been a controversial issue in the field of the modern Chinese philosophy. The key to such an application is using an analytical approach. Various forms of analysis are used in modern philosophy. The term “analytic approach” refers to both conceptual and semantic analyses by which to analyze meaning and apply philosophical concepts, so as to interpret a different significance of these philosophical concepts. Beginning with the challenge of the analytic approach as applied to Chinese philosophy, it is necessary to address the line of holism and transcendental argument in terms of philosophical methodology. The former provides us with a framework of analysis of particular problems, while the latter helps us clarify the major difference between a philosophical argument and other arguments for knowledge. Chinese philosophy must greatly emphasize the importance of philosophical methodology, so as to reconstruct the framework of Chinese philosophy as it stands today.