When the Soviet Union and communist bloc collapsed in late 1980s, it was thought that liberal democracy would become universal and would be the only form of government around the world, and Francis Fukuyama proclaimed the ultimate victory of liberal democracy. But there were other voices that predicted that communism would be replaced by nationalism and not by democracy. As the world entered the 21st century, it became obvious that nationalism was on the rise, particularly in countries that had suffered colonialism and past humiliation, such as China. The end of the Cold War, marked by the collapse of communism, precipitated a tide of nationalism that had not been seen in decades. In the 1950s and 60s many populations revolted against their master colonialists to demand independence and to become masters of their own destinies.

The rise of Chinese nationalism began as early as the late 19th century after China suffered defeat in the Sino-Japanese war and had to accept the Treaty of Shimonoseki on April 7, 1895. China had to pay large amount of silver to Japan and open specific areas of the Yangtse River and some ports to Japanese trade. Germany and Britain also occupied some territories in China and the British obtained a 99-year lease over Hong Kong and Kowloon peninsula. The Boxer rebellion after the Shimonoseki treaty marked a significant uprising against foreign occupation. Author Suisheng Zhao says the Cultural Revolution under Mao Tsetung viewed the Boxer rebellion as an anti-imperialist patriotic movement. However, Deng Xiaoping and leaders after him contradicted Mao and considered the Boxers as irrational and fanatic anti-foreigners. The reason for this turnaround was that Deng Xiaoping wanted to open China to foreign investment and transform the state-led economy into a market economy.

The Chinese nation-state slowly took form through the crisis years when the Chinese Communist Party (CCP) was fighting the Nationalists (KMT) under Chiang Kai-shek. The CCP was able to reconcile nationalism and communism. But the CCP success came from the fact that it was able to strongly promote nationalism among the mass of proletarians, says the author. The KMT was considered an elite nationalist movement after Sun Yatsen launched the revolution in 1911 to end centuries of monarchy in China. But Mao Tsetung was clever and although he believed in Marxism-Leninism, he pushed for the concept that a communist can also be a patriot and that the proletariat and all working people could achieve national liberation by overthrowing Western imperialism. "In revising Marxism to meet China's practical needs, Mao always claimed that he was applying it (Marxism) to China's particular national circumstances," says Zhao. The early years of the People's Republic of China proceeded smoothly because the communist party under Mao knew how to run a state under the circumstances at that time.

Chinese nationalism rose to its highest level after NATO warplanes under the command of the US bombed the Chinese embassy in Belgrade in 1999. Tens of thousands of demonstrators took to the streets in Chinese cities at the urging of the government to denounce Washington. The US said it was a mistake caused by faulty intelligence. The bombing of the embassy took place just before the tenth anniversary of the Tiananmen Square massacre, which provided Beijing the excuse to direct Chinese protests at the Americans. Candles were lit for the three Chinese journalists killed in Belgrade, but none for the students killed at Tiananmen.

The author says that the rise of Chinese nationalism in the 21st century could be an important challenge to the international community. Western businesses may welcome the vast opportunity to do business in China, but there are people who warn against China's growing economic and military power. Two well known Chinese scholars, Andrew J. Nathan and Robert Ross, believe that Chinese nationalism is a response to the century of humiliation inflicted by some Western countries. Communist ideology may decay in China. That is why Beijing leaders have adopted a pragmatic approach by using nationalist sentiment to shore up the legitimacy of the Communist Party and to repair weaknesses of the economy. Nationalism has been used to defend the country's borders and to claim sovereignty over Taiwan.