The article gives an idea of the main milestones in Chinese Manchu studies. The formation of the Eight Banner system could be considered as one of the most important issues among the modern historians in China, such as Wang Zhonghan and especially Liu Xiaomeng. The article analyses the evolution in Chinese historiography concerning this important military, administrative, and economic institution of the Manchu state at the initial stage of its emerging. It becomes obvious that American and Chinese schools have affected each other. Without such interaction, it is hard to imagine a critical revision of the dominant statements in both historiographical schools. At the same time, despite some common approaches, the gap between the two schools is still substantial. The influence of the predecessors and political agenda cause modern Chinese historians to consider the early Manchu history as the evolution process, the goal of which was to absorb the achievements of the Chinese civilization. In this interpretation, “the formation of the Eight Banner” issue becomes relevant since the Banner system has served for the transformation of the so-called “backward” communities into “civilized” society. In a short time, due to the Banner system, a transformed society was able to create a state based on Chinese political culture. These changes in the Jurchen social structure reflect the establishment of a centralized government. Although the Banner system was obviously a repressive institution for its ordinary members, it was the only way to make a strong state under conditions of small resource base and loose connections between Jurchen tribes.