Was the homogeneous German "cultural-national" identity of past centuries an illusion? Is it conceivable that China plays a role in German identity? This study discusses, motivated by an Eastern principle of wholeness, the approaches of Postcolonial and Cultural Studies and explores the literary representation of China as a process of cultural identity formation. Through a historically and interculturally expanded intertextuality, the comprehensive text analysis traces China as an indicator and factor in the development of German literary and cultural history. It investigates the interplay between the "German" and the "Chinese," making the various identity formations and their construction transparent. Thus, a holistic identity model of the interactively transformed Third is tested, which can also be fruitful for the culturally oriented exploration of other national literatures and world regions.