Loanwords

Like any other language, Chinese has absorbed a sizable number of loanwords from other cultures. Most Chinese words are formed out of native Chinese morphemes, including words describing imported objects and ideas. However, direct phonetic borrowing of foreign words has gone on since ancient times.

Words borrowed from along the Silk Road since Old Chinese include 葡萄 "grape", 石榴 "pomegranate" and 狮子／獅子 "lion". Some words were borrowed from Buddhist scriptures, including 佛 "Buddha" and 菩萨／菩薩 "bodhisattva." Other words came from nomadic peoples to the north, such as 胡同 "hutong". Words borrowed from the peoples along the Silk Road, such as 葡萄 "grape" (pútáo in Mandarin) generally have Persian etymologies. Buddhist terminology is generally derived from Sanskrit or Pāli, the liturgical languages of North India. Words borrowed from the nomadic tribes of the Gobi, Mongolian or northeast regions generally have Altaic etymologies, such as 琵琶 "pípa", the Chinese lute, or 酪 "cheese" or "yoghurt", but from exactly which source is not always clear.

Modern borrowings and loanwords

Modern neologisms are translated into Chinese primarily in three ways: free translation (calque, by meaning), phonetic translation (by sound) and a combination of the above two (partially transcriptive with a careful selection of meaning-encoding characters). Today, it is much more common to use existing Chinese morphemes to coin new words in order to represent imported concepts, such as technical expressions and international scientific vocabulary, owing to the structural differences from Indo-European languages. Any Latin or Greek etymologies are dropped and converted into the corresponding meaning-carrying Chinese characters (for example, anti- typically becomes "反", literally opposite), making them more comprehensible for Chinese but introducing more difficulties in understanding foreign texts. 

For example, the word telephone was loaned phonetically as 德律风／德律風 (Shanghainese: télífon [təlɪfoŋ], Mandarin: délǜfēng) during the 1920s and widely used in Shanghai, but later 电话／電話 (diànhuà "electric speech"), built out of native Chinese morphemes, became prevalent. Other examples include 电视／電視 (diànshì "electric vision") for television, 电脑／電腦 (diànnǎo "electric brain") for computer; 手机／手機 (shǒujī "hand machine") for mobile phone, and 蓝牙／藍牙 (lányá "blue tooth") for Bluetooth. 網誌 (wǎng zhì "internet logbook") for blog in Cantonese for people in Hong Kong and Macau. Occasionally half-transliteration, half-translation compromises are accepted, such as 汉堡包／漢堡包 (hànbǎo bāo, "Hamburg bun") for "hamburger". Sometimes translations are designed so that they sound like the original while incorporating Chinese morphemes, such as 拖拉机／拖拉機 (tuōlājī, "tractor," literally "dragging-pulling machine"), or 马利奥／馬利奧 for the video game character Mario. This is often done for commercial purposes, for example 奔腾／奔騰 (bēnténg "running leaping") for Pentium and 赛百味／賽百味 (Sàibǎiwèi "better-than hundred tastes") for Subway restaurants.

Foreign words, mainly proper nouns (names of people, places), continue to enter the Chinese language by transcription according to their pronunciations. This is done by employing Chinese characters with similar pronunciations. For example, "Israel" becomes 以色列 (pinyin: yǐsèliè), "Paris" becomes 巴黎 (pinyin: bālí). A rather small number of direct transliterations have survived as common words, including 沙发／沙發 shāfā "sofa", 马达／馬達 mǎdá "motor", 幽默 yōumò "humor", 逻辑／邏輯 luójí "logic", 时髦／時髦 shímáo "smart, fashionable" and 歇斯底里 xiēsīdǐlǐ "hysterics". The bulk of these words were originally coined in the Shanghainese dialect during the early 20th century and were later loaned into Mandarin, hence their pronunciations in Mandarin may be quite off from the English. For example, 沙发／沙發 and 马达／馬達 in Shanghainese actually sound more like the English "sofa" and "motor".

Western foreign words representing Western concepts have had influence on Chinese language since the 20th century, through transcription. From French came 芭蕾 (bāléi "ballet"), 香槟 (xiāngbīn, "champagne"), via Italian 咖啡 (kāfēi "caffè"). The English influence is particularly pronounced. From early 20th century Shanghainese, many English words are borrowed, such as the above-mentioned 沙发／沙發 (shāfā "sofa") and 高尔夫／高爾夫 (gāoěrfū "golf"). Later United States soft influences gave rise to 迪斯科 (dísīkè "disco"), 可乐／可樂 (kělè "cola") and 迷你 (mínǐ "mini(skirt)"). Contemporary colloquial Cantonese has distinct loanwords from English like cartoon 卡通 (cartoon), 基佬 (gay people), 的士 (taxi), 巴士 (bus). With the rising popularity of the Internet, there is a current vogue in China for coining English transliterations, for example, 粉丝／粉絲 (fěnsī "fans"), 黑客 (hēikè "hacker", literally "black guest"), 部落格 (bùluōgé "blog", literally "interconnected tribes") in Taiwanese Mandarin.

Another result of the English influence on Chinese is the appearance in Modern Chinese texts of so-called 字母词 zìmǔcí ("lettered words") spelled with letters from foreign alphabets. This has appeared in magazines, newspapers, on web sites and on TV: 三G手机 "3rd generation cell phones" (三 sān "three" + G "generation" + 手机 shǒujī "mobile phones"), IT界 "IT industry", HSK (hànyǔ shuǐpíng kǎoshì, 汉语水平考试), GB (guóbiāo, 国标), CIF价 (Cost, Insurance, Freight + 价 jià "price"); e家庭 "electronic home" (家庭 jiātīng "home"); W时代 "wireless generation" (时代 shídài "generation"); 的士call, TV族, 后РС时代 "post-PC era" (后 hòu "after/post-" + PC "personal computer" + 时代 shídài "epoch"), and so on.

Since the 20th century, another source has been Japan. Using existing kanji, which are Chinese characters used in the Japanese language, the Japanese re-molded European concepts and inventions into wasei-kango (和製漢語, literally Japanese-made Chinese), and re-loaned many of these into modern Chinese. Other terms were coined by the Japanese by giving new senses to existing Chinese terms or by referring to expressions used in classical Chinese literature. For example, jīngjì (经济／經濟, keizai), which in the original Chinese meant "the workings of the state", was narrowed to "economy" in Japanese; this narrowed definition was then re-imported into Chinese. As a result, these terms are virtually indistinguishable from native Chinese words: indeed, there is some dispute over some of these terms as to whether the Japanese or Chinese coined them first. As a result of this to-ing and fro-ing process, Chinese, Korean, Japanese and Vietnamese share a corpus of linguistic terms describing modern terminology, in parallel to a similar corpus of terms built from Greco-Latin terms shared among European languages.