Abstract:Before the East Asian economic crisis, many scholars believed that confucianism had promoted the prosperity of East Asian economy. However, the belief was challenged with the outbreak of the crisis. Objectively speaking, confucianism has both positive and negative effects upon East Asian modernization. It is their earlier efforts to carry out cultural transformation and innovation that have lead to the successful realization of modernization in these countries and areas. The lesson to learn from their success and setbacks is: People should surpass the traditional values of both the east and the west, take their own route, be active in bringing forth new cultural ideas.