China's foreign policy today is summarized as strategic relations with neighboring countries and the world's superpowers to strive for China's national interest, and to create a favorable environment for China's domestic development for perpetual competition in the world in the long-run.

Since the start of the period of Reform and Opening Up in 1978, China's leaders have been regular travelers to all parts of the globe, and it has sought a higher profile in the UN through its permanent seat on the United Nations Security Council and other multilateral organizations.

HOW IT IS CREATED ?

At a national meeting on diplomatic work in August 2004, Chinese Communist Party (CCP) general secretary Hu Jintao reiterated that China will continue its "independent foreign policy of peaceful development," stressing the need for a peaceful and stable international environment, especially among China's neighbors, that will foster "mutually beneficial cooperation" and "common development." This policy line has varied little in intent since the People's Republic was established in 1949, but the rhetoric has varied in its stridency to reflect periods of domestic political upheaval.

In 2007, Foreign ministry spokesman Qin Gang made a statement about the eight-point diplomatic philosophy of China:

1. China will not seek hegemony. China is still a developing country and has no resources to seek hegemony. Even if China becomes a developed country, it will not seek hegemony.
2. China will not play power politics and will not interfere with other countries' internal affairs. China will not impose its own ideology on other countries.
3. China maintains all countries, big or small, should be treated equally and respect each other. All affairs should be consulted and resolved by all countries on the basis of equal participation. No country should bully others on the basis of strength.
4. China will make judgment on each case in international affairs, each matter on the merit of the matter itself and it will not have double standards. China will not have two policies: one for itself and one for others. China believes that it cannot do unto others what they do not wish others do unto them.
5. China advocates that all countries handle their relations on the basis of the United Nations Charter and norms governing international relations. China advocates stepping up international cooperation and is against unilateral politics. China should not undermine the dignity and the authority of the U.N. China should not impose and set its own wishes above the U.N. Charter, international law and norms.
6. China advocates peaceful negotiation and consultation so as to resolve its international disputes. China does not resort to force, or threat of force, in resolving international disputes. China maintains a reasonable national military buildup to defend its own sovereignty and territorial integrity. It is not made to expand, nor does it seek invasion or aggression.
7. China is firmly opposed to terrorism and the proliferation of weapons of mass destruction. China is a responsible member of the international community, and as for international treaties, China abides by all them in a faithful way. China never plays by a double standard, selecting and discarding treaties it does not need.
8. China respects the diversity of the civilization and the whole world. China advocates different cultures make exchanges, learn from each other, and complement one another with their own strengths. China is opposed to clashes and confrontations between civilizations, and China does not link any particular ethnic group or religion with terrorism.

IT IS BAD BECAUSE -

In the wake of the Foreign policy, Chinese authorities unleashed a large-scale fiscal stimulus program equal to 11 percent of the country’s GDP. While this had the intended effect of insulating China from the full force of the economic slump, the longer-term and unintended impact was to expand and solidify China, Inc., the sprawling system of state-owned enterprises and quasi-private companies that are sustained by the CCP’s management of the economy. Xi’s accession to power in late 2012 solidified this trajectory. As the economist Nicholas Lardy writes in his recent book, The State Strikes Back: The End of Economic Reform in China?, since 2012, “private, market-driven growth has given way to a resurgence of the role of the state in resource allocation, and a shrinking role for the market and private firms.” Today, facing a slowing economy and struggling with both deleveraging its debt-bloated system and dealing with the ongoing trade war with the United States, the Xi administration is again wrestling with the question of how large of a stimulus package it should deploy. If the economy spirals out of control, we will likely see a redux of 2008, with a resultant further strengthening of the state sector over the private economy.