This thesis is based on the analysis of 說文解字(Shuowenjiezi), an authoritative text in the study of Chinese Characters. The main objectives of this research are: examining the meaning creation, division and linking processes of Chinese characters through ‘象xiang’; and clarifying the generative principles behind the formation of polysemous characters through a classification method called ‘類lei’. The research is largely composed of three steps. The first is defining the principles that shaped the basic meaning structure of Chinese characters. The second is studying the creation and alternation ofmeaning by looking into examples of character division and compound letters. Lastly, the thesis concludes by further explaining these basic formation principles through the theory of exceptions of basic principles.