Chinese civilization originated in various regional centers along both the Yellow River and the Yangtze River valleys in the Neolithic era, but the Yellow River is said to be the Cradle of Chinese Civilization. The written history of China can be found as early as the Shang Dynasty (ca. 1700 BC – ca. 1046 BC). Oracle bones with ancient Chinese writing from the Shang Dynasty have been radiocarbon dated to as early as 1500 BC. The origins of Chinese culture, literature and philosophy developed during the Zhou Dynasty (1045 BC-256 BC).

The Zhou Dynasty began to bow to external and internal pressures in the 8th century BC. The ability of the Zhou to control its regional lords lessened, and the kingdom eventually broke apart into smaller states, beginning in the Spring and Autumn Period and reaching full expression in the Warring States period. In 221 BC, Qin Shi Huang united the various warring kingdoms and created the first Chinese empire. Successive dynasties in Chinese history developed bureaucratic systems that enabled the Emperor of China to directly control vast territories.

The conventional view of Chinese history is that of alternating periods of political unity and disunity, with China occasionally being dominated by Inner Asian peoples, most of whom were in turn assimilated into the Han Chinese population. Cultural and political influences from many parts of Asia, carried by successive waves of immigration, expansion, and cultural assimilation, are part of the modern culture of China.

What is now China was inhabited by Homo erectus more than a million years ago. Recent study shows that the stone tools found at Xiaochangliang site are magnetostratigraphically dated to 1.36 million years ago. The archaeological site of Xihoudu in Shanxi Province is the earliest recorded use of fire by Homo erectus, which is dated 1.27 million years ago. The excavations at Yuanmou and later Lantian show early habitation. Perhaps the most famous specimen of Homo erectus found in China is the so-called Peking Man discovered in 1923-27.

Three pottery pieces were unearthed at Liyuzui Cave in Liuzhou, Guangxi Province dated 16,500 and 19,000 BC.

The Neolithic age in China can be traced back to between 12,000 and 10,000 BC. Early evidence for proto-Chinese millet agriculture is radiocarbon-dated to about 7000 BC. The Peiligang culture of Xinzheng county, Henan was excavated in 1977. With agriculture came increased population, the ability to store and redistribute crops, and the potential to support specialist craftsmen and administrators. In late Neolithic times, the Yellow River valley began to establish itself as a cultural center, where the first villages were founded; the most archaeologically significant of those was found at Banpo, Xi'an. The Yellow River was so named because of loess forming its banks gave a yellowish tint to the water.

The early history of China is made obscure by the lack of written documents from this period, coupled with the existence of accounts written during later time periods that attempted to describe events that had occurred several centuries previously. In a sense, the problem stems from centuries of introspection on the part of the Chinese people, which has blurred the distinction between fact and fiction in regards to this early history.

By 7000 BC, the Chinese were farming millet, giving rise to the Jiahu culture. At Damaidi in Ningxia, 3,172 cliff carvings dating to 6000-5000 BC have been discovered "featuring 8,453 individual characters such as the sun, moon, stars, gods and scenes of hunting or grazing." These pictographs are reputed to be similar to the earliest characters confirmed to be written Chinese. Later Yangshao culture was superseded by the Longshan culture around 2500 BC.

The Xia Dynasty of China (from ca. 2100 BC to 1600 BC) is the first dynasty to be described in ancient historical records such as Records of the Grand Historian and Bamboo Annals.

Although there is disagreement as to whether the dynasty actually existed, there is some archaeological evidence pointing to its possible existence. The historian Sima Qian (145-90 BC), who wrote the Shiji or Records of the Grand Historian, and the so-called Bamboo Annals date the founding of the Xia Dynasty to 4,200 years ago, but this date has not been corroborated. Most archaeologists now connect the Xia to excavations at Erlitou in central Henan province, where a bronze smelter from around 2000 BC was unearthed. Early markings from this period found on pottery and shells are thought to be ancestral to modern Chinese characters. With few clear records matching the Shang oracle bones or the Zhou bronze vessel writings, the Xia era remains poorly understood.