China’s most prominent dissident, the late Liu Xiaobo, criticized the Chinese Communist Party’s efforts “to promote what he considered a toxic mixture of traditional culture and modern patriotism.” He worried more about “a mentality of world domination” characterized by a “thuggish outlook.” Quoted in Orville Schell and John Delury’s (2013) book Wealth and Power, this statement reveals the culmination of some 150 years of nation-building, which now encapsulates what is probably the strongest and potentially most explosive primordial nationalism in the region since Imperial Japan. This article examines the sources of Chinese nationalism and gauges the extent to which Chinese nationalism contributes to cooperation or confrontation in China’s foreign relations.