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In the context of globalization, the concept of national identity becomes much richer and the governments’ policy‐makings have been largely monitored by the markets. If some countries have been more successful than others in responding to the same challenges posed by incorporation by the world economy, then the reason for these different answers is to be found in their national choices. In recent years, few developing countries have enjoyed benefits from interaction with outside world as much as China has. As a late‐comer of globalization, China has been confronted with a clash between the dissolution of a traditional society and the construction of a modern one. Taking into consideration China’s history, population, size, potential and geo‐political influence, this article reviews her unique pathway in quest for a new identity in the era of globalization and tries to find some enlightenments equally useful for other developing countries.

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