Two major events in the first decade of the twentieth century resulted in the development of a narrative of Chinese awakening that began to influence British policy and form the rationale for imperial retreat - the Boxer crisis and the Russo-Japanese War. This chapter traces how the narrative of Chinese awakening developed in this period, especially among those who were inclined to view China positively, and how it made its way into official circles and began to affect policymaking. In the immediate aftermath of the Boxer crisis, policymakers worked to maintain Britain's position in China, but the rise of nationalism and increased competition with the powers meant that in the years following 1905, more constraints were placed on British influence and freedom of maneuver in China. 1906 was also the year in which the Chinese put a strong challenge to the existing authority structure of the Maritime Customs.