School moral education in any country is carried out in a particular social and cultural context. The renewal of policy and practice in moral education in China has come about because of a rapidly changing Chinese society, as a result of the government's 'reform and opening up' policy since the end of the 1970s. The consequent changes in the Chinese economy, politics and culture are innovatory and challenging. It is these changes that have brought about, and will continue to bring about, new ideas and practices in moral education. This paper describes how Chinese moral education has been influenced according to recent social changes and modernization in China, including the formation of the market economy, the impact of globalization, mass media and the Internet, cultural diversity and value pluralism, trends to democratization in politics, and structural changes in the family. It also considers the kind of social issues and challenges which are being dealt with and anticipated in policy, theory and practice in contemporary Chinese moral education.