It was some Chinese diplomats who made the first contacts with western drama during their visit to western countries. They watched some western plays partly because they attended diplomatic receptions and partly out of pure curiosity. Evidently, they were fascinated by such fresh and original performances and showed special interest.

Shortly after that, as some Chinese coastal ports were opened to the outside world, a number of western missionaries and foreigners came to China and resided mainly in Shanghai. There they entertained themselves by performing western plays. In 1866, some foreign residents in Shanghai established the first western-style theater -- The Lyceum Grand Theater operated by foreigners themselves, the theater accommodated the performance on a regular basis of plays written and staged by a troupe called ADC.

Many Chinese people who had pursued studies abroad or who were interested in western drama frequented The Lyceum Grand Theater as they thought it something god-given for them to be able to watch western plays in their own country. As a result, they came to acquire a more detailed understanding of this fresh art form.

In 1899, a group of Chinese students from St. John's College in Shanghai wrote and staged a play entitled A History of Corrupt Officialdom. It described a rich countryman who went to visit an official living in the city. There, perplexed by the surprisingly grand and luxurious scenes, he lost his mind and did many ridiculous things. Back at home, he was determined to secure an official position and he succeeded in becoming a county magistrate. It was true that he had acquired some official formalities, but he could not settle any lawsuit. Finally, he was forced to resign and slip off his official robes. What remained beneath the robes were clothes made of homespun cloth.

This play featuring "no singing and grand activities" differed widely from the traditional Chinese drama in performance. However, some plots were borrowed from traditional dramatic works. The students' participation in dramatic performances negated the long-held concept that taking part in dramatic performances was an inferior business and thus laid the foundation for the subsequent dramatic activities by overseas Chinese students and intellectuals. In addition, the actors in these plays were all Chinese and it was also true of the audience. As a result, the western drama enjoyed hitherto by a relatively small number of foreigners had begun to approach the broad Chinese audience. Therefore, those students putting on realistic plays were generally considered as the precursors of modern Chinese drama.