ABSTRACT
The most formidable challenge China faces is the regime question. Will China become a democracy, or will it remain a one-party authoritarian system? This affects China 's "peaceful rise" in two ways . Externally, a democratic China will assure its neighbors and other international players of its peaceful intention, as the openness and transparency of its government will have the ability to do so. Moreover, other countries will certainly be more willing to live with a democratic China. Internally, China 's development cannot sustain under a rigid political system. In face of the more and more diverse and modern economy and society, a rigid political system cannot meet the needs of governance. Either socioeconomic development will be suppressed, or disruptive changes in the political system will occur. Both, however, will likely discontinue China 's economic development and social modernization. Hence, although most observers are concerned with how regime change or non-change in China will affect its external relations , it is its internal effects that will determine whether the goal of "peaceful development" is attainable for China.
