This chapter focuses on the People’s Republic of China’s “grand strategy” in world affairs. Grand strategiy, for all powers, is rooted in the nation’s past and its historical evolution. As such, this chapter traces the various historical and cultural sources of China’s contemporary approach to the world. It argues that China has a deep sense of greatness—but also wounded pride. In particular, different sources of China’s traditions, encounters with the West, border insecurities, and preoccupation with the United States. The author argues that China’s relations with the United States are reaching a critical, and dangerous, point.