The main influences on Chinese folk tales have been Taoism, Confucianism and Buddhism. Some folktales may have arrived from Germany when Grimm brothers had contributed some materials for the folktales regard to the country life of the German dwellers since the 1840s; others have no known western counterparts, but are widespread throughout East Asia. Chinese folktales include a vast variety of forms such as myths, legends, fables, etc. A number of collections of such tales, such as Pu Songling's Strange Stories from a Chinese Studio, now remain popular.

Each Chinese folktale includes the representation of various objects and animals and uses symbolic messages through its characters and usually strives to convey a message that instills the reader with some sort of virtuous insight. These messages are vital to Chinese culture and through these folktales, they will be passed down to future generations to also learn from.