More than 2,000 people recited classic quotes from 'The Analects', a collection of Confucius' famous sayings, in front of the Confucius temple in Qufu.
The participants, including government and UNESCO officials, scholars, students and descendants of Confucius, from over 20 countries and regions, marched towards the temple wearing yellow ribbons.
For thousands of years, Confucius has been regarded as a symbol of China's traditional culture, as well as the country's intellectuals.
He was venerated as a great sage in ancient China, but despised as a regressive pedant during the decade-long Cultural Revolution (1966-1976), headed by Mao Zedong the founder of the ruling Communist Party of China (CPC).
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Representatives presented flower baskets in front of a statue of Confucius, and all participants bowed three times toward the statue.
The Qufu government organised experts to conduct research on the current name, time, venue, procedure, code of etiquette, sacrificial offerings and ritual dance of the ceremony, to ensure it was suitable occasion.
Ceremonies were held throughout China today, state-run Xinhua news agency reported.
Some foreigners also attended the ceremony in Quzhou.
Confucius (551-479 BC), an educator and philosopher, founded Confucianism, a school of thought that deeply influenced later generations.
He was also the first Chinese person to set up private schools that enrolled students from all walks of life. He is believed to have born on September 28.
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