Chinese fir, Cunninghamia lanceolata (Lamb.) Hook. (Taxodiaceae), is an evergreen conifer primarily distributed in southern China. This species exhibits very poor natural regeneration, possibly due to low light and a thick litter layer. To improve the understanding of the natural regeneration capacity of Chinese fir, in this study, we conducted a shade house experiment to determine the optimum light requirements and seed positions for seedling emergence and early growth. The experiment involved five light levels (100%, 60%, 40%, 15%, 5% of full sunlight) and four seed positions (1 cm beneath the soil surface without litter, on the soil surface without soil–seed contact, on the soil surface and covered with litter, and 1 cm beneath the soil surface and covered with litter). Seedling emergence was highest at 5%–15% sunlight, whereas seedling height, root length, root mass, stem mass, leaf mass, and total mass were highest at 60% sunlight. For each light level, seed position significantly affected emergence and growth. The above-litter position inhibited seedling emergence and survival, while the below-litter position favored seedling emergence and early growth, particularly under high light levels. Based on these results, to enhance natural regeneration of Chinese fir, we recommend periodical thinning to increase light into the understory after successful seedling emergence. We also recommend sowing seeds deeper into the litter to improve soil contact and moisture conditions.