This chapter gives an insight into China’s foreign policy conduct by analysing its history, both in terms of narratives and perspectives, which led to the formation of the present Chinese strategic culture. Its self-image at present is based on a cautiously constructed narrative by the Communist Party of China (CPC) of an imaginary, idealized past as a “benign and benevolent power”. Through this justification, the present Chinese government seeks to establish Chinese supremacy in Asia. Consequently, owing to its power and presence, other neighbouring countries like India should acquiesce to China’s primacy and not hinder the revival of a true hierarchical order pertaining to the old Sino-centric tributary system. The author points out the inherent differences between India and China, which create distrust, perception differences and power rivalry between them, such as the boundary disputes and India’s refuge to the Tibetan Government in Exile. Such Sino-Indian rivalry will not see much improvement in the foreseeable future, as there are other overlapping spheres of influence in the Indo-Pacific that are major determining factors.