This term refers to the time of peace and prosperity envisioned by Confucian scholars when all the people under heaven are one family, equal, friendly, and helpful to each other (as opposed to xiaokang [小康] – moderate prosperity). Confucianism takes universal harmony as the supreme stage of the development of the human society, somewhat similar to the idea of utopia in the West. Its main features are: All power and wealth belong to the whole of society; all people are equal and live and work in peace and contentment; everyone is cared for by society; everything is used to its fullest and everyone works to his maximum potential. In the late Qing Dynasty and the early Republic of China, the term referred to the concepts of socialism, communism, or cosmopolitanism that had been introduced to China from the West.

When the Great Way prevails, the world belongs to all the people. People of virtue and competence are chosen to govern the country； honesty is valued and people live in harmony. People not only love their parents, bring up their children, but also take care of the aged. The middle-aged are able to put their talents and abilities to best use, children are well nurtured, and old widows and widowers, unmarried old people, orphans, childless old people, and the disabled are all provided for… This is universal harmony. (The Book of Rites)