Abstract: The establishment of the Central National Martial Arts Institute and its affiliated system marked a significant milestone in Chinese martial arts’ transition into the “National Arts Era” (Guoshu Period), representing a phased achievement in the modernization of martial arts organizations. Employing the method of literature research, this study first examines the transformation process of martial arts organizations during the Republic of China period, tracing their evolution from private and exclusive entities to public institutions and eventually into a systematized structure. It then analyzes the resulting Guoshu institutional system, highlighting its administrative challenges—specifically, the lack of vertical coordination and horizontal fragmentation among constituent organizations. In response, the Chinese martial arts community initiated a “National Martial Arts Unification Movement” aimed at standardizing administrative practices. However, due to the turbulent political climate and the movement’s incomplete implementation, the system ultimately remained fractured.