This paper presents a research of the intercommunications from three aspects between Chen Yinque and the circle of Occidental Sinology in the first half of the 20th Century according to Chens life chronicle and letters. Firstly, familiar with the occidental sinologists, Chen made accurate evaluation of them who, on the contrary, did not think highly of Chen. Secondly, in the construction of modern Chinese academic system, Chen adhered to both Western modern academic learning as measurable standards, and deep influence of the particularities of Chinese tradition, thus exceeding pure academic research and rising to a high level of a reconstruction of Chinese modern cultural system and recurrence of Chinese brilliant culture. Thirdly, three different levels of influences that Chen received from the occidental sinologists have been reviewed.  The first level is that he emphasized on linguistic study and considered language as a representation of ethnic culture and spirit, taking language as the starting point to make comparative study of Chinese and Western cultures. The second level is that he abandoned the hot issues that were central to the occidental sinologists and turned to Chinese ancient history and literature for study in the beginning of the 1930s. What accounts for this change, generally accepted by the present academic circle, is that since he did not have close contact with the occidental circle of sinology after he returned to China, he could not make sure that his study kept pace with the foremost academic achievements in the occidental sinology. Among the reasons is that he was not highly acknowledged by such celebrated scholar as Paul Pelliot. Nevertheless, his evaluation on the Chinese academic research and his appeal to establish a modern academic system was obviously built on the principles established by the Western academic circle. The third level is that he was cognizant that the Chinese should make a thorough analysis of the attempts made to learn from the West and foreign influences including the study by the Western sinologists after going through the social turbulences in the first half of the 20th Century. Therefore, Chen could assert his original views on the two basic issues: what to learn and how to learn, which was not only related to his deep and broad personal thoughts but also to the long subtle influence he received from the occidental sinologists.