In the Chinese language, morphologically complex words have been attested since the remote past of the language, including both stem-modifying processes and agglutination of morphemes, mostly lexical and free in the classical language. However, in Chinese, grammaticalization typically entails no phonological alteration (Bisang, Studies in Language 20:519À597, 1996) and it is still a matter of debate whether compounding and derivation are two distinct phenomena in Modern Mandarin Chinese (see, among others, Pan et al, The research on word formation in Chinese, 2004). In this paper we shall tackle this issue in the framework of Construction Morphology (Booij, In: Dressler et al (eds) Morphology in demarcations, 2005; In: Montermini et al (eds) Selected proceedings of the 5th Décembrettes: morphology in Toulouse, 2007), also taking into account the diachronic perspective. Our proposal is that it is possible to analyse as instances of grammaticalized derivational formants the right-hand elements in word formation schemas such as [[X] X 性] N [[X] X xìng] N Ôthe quality of X/connected with XÕ (抽象性 chō uxiàngxìng ÔÔabstractnessÕÕ), which undergo processes of semantic shift analogous to those of e.g. English -hood. Ó Springer Science+Business Media B.V. 2010relational meaning, as e.g. Eng. 1 bakery from (to) bake, which can indeed be distinguished from (root) compounding. Our claim is that derivational affixes in Mandarin are the evolution of compound constituents, appearing in a fixed position with a certain meaning in a number of complex words. In order for a lexeme to become a derivational affix, it has to undergo a shift in meaning, which can be either more ''general'' than when used in other contexts, or it can be the extension of one of the possible (non-core) meanings of the lexeme.In a Construction Morphology framework (Booij