Introduction:  

The developments in transportation and telecommunication (especially the internet) in the recent 20 years have tremendously enhanced the intercultural communication among various nations and ethnic groups.  One of the results of the intercultural communication is that more and more words are being borrowed from language A into Language B to express those objects or concepts that may not exist in Language B.  Using loan words has almost become a trend in China in these twenty years.  Chinese, particularly the young Chinese, are using more and more loan words in their language.  Official statistics from Beijing Language Institute (2002) have suggested that about one thousand such new words are added to the Chinese vocabulary each year.  People can easily accept them and are using them with an increasing frequency.   Take KFC and McDonald for examples, few people living in such large cities like Beijing and Shanghai are unfamiliar with “maidanglao” (McDonalds), “kendeji”(KFC) and “xingbake” (Starbucks).  Meanwhile, in English speaking countries, people are also becoming more familiar with the Chinese terms Yamcha, Wushu, Taichi and Fengshui than before.  From the prospective of linguistics, all above words in bold are borrowed words or loan words.

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