This study is motivated by the question: how useful is it to understand overseas Chinese literature comprehensively as a cultural context from the perspective of the localization of culture? It aims to derive plausible answers to this question by investigating China's perceptions and responses to the globalization, the current tendency of cultural studies in China, and contents of the current debate around the overseas Chinese literature, particularly those with cultural perspectives. As acknowledging both chances and crises, China is taking active yet strategic stances against the globalization, the world's new trend. At the same time, China is responding to the cultural globalization, using the strategy of 'cultural nativitization'. The core of this defensive, yet extended response lies at the internal solidification through the centeredness on Chinese national culture and the globalization of its values. Based on the analysis of China's responses, this study concludes that the attempt to understand overseas Chinese literatures based on cultural perspectives has following objectives: (1) it intends to expand the domain of Chinese national literature by integrating overseas Chinese literature as mediated through the common national cultural values; and (2) it ultimately aims to project Chinese national literature and its cultural values into other parts of the world.