This article advances a procedure to study the localization explanation of the history of Chinese mathematics, and discuss a new approach to the study of the history of Chinese mathematics. Based on this, Liu Hui's Geyuan procedure is studied. Firstly, we read the text of the Yuantian procedure in its local context. Secondly, we analyze the local background knowledge Liu Hui replies on when he comments on the Nine Chapters on Mathematical Procedures, and illuminate the local concepts and methods he used to create this procedure. Finally, on this basis, we localizedly interpret the Geyuan procedure. This article indicates that the circles and the squares Liu Hui deals with in the Geyuan procedure are empirical matters rather than ideal objects. Relying on the empirical finite method to cut a circle, Liu Hui proves the area formula of a circle, and writes the text in which the general argumentation theory works, instead of using deductive inference, which is based on the infinitesimal analysis.