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Islam has been existing for thousands of years since arriving in China until today. As it is known, there is a very old and unique culture system in China. In addition to these different cultural structures, Chinese culture is characterized by absorbing foreign cultures within itself. Despite all of this, Islam still survived in an environment surrounding by Chinese culture. One of the reasons for this is the sinicization (localization) of Islam. Thanks to this process, Islam could integrate but without being assimilated into Chinese culture, and adjust herself to China’s political, economic and social backgrounds. On the other hand, globalization, which maintains connection between Chinese Islam and Islamic world, is as important as localization throughout the history of Chinese Islam. Islamic revival and reform movements occurred in the late China Empire and the awakening of Chinese Muslims’ religious awarness, should be considered in the context of the globalization of Islam. It is because of the establishment of contact between Chinese Muslims and Islamic World that they started to reexamine their own faith. Therefore, Chinese Islam always clings to Islamic tenets in spite of being localized substantially. In this sense, it is possible to say that globalization help Chinese Islam maintain her İslamic principles. In this paper, the influence of localization and globalization on the development of Chinese Islam will be examined in the light of important events in history of Chinese Islam, such as the integration of Islamic and Confucian thoughts and the occurrence of Chinese Islamic revival and reform movements, which prevented integration process from transforming into assimilation. [ABSTRACT FROM AUTHOR]