This paper analyzes recent trends in Chinese international behavior through
the use of the two-good theory of foreign policy. This general theory posi
ts that stares pursue two desired goals-change and maintenance, which refer
to their abilities to alter or to protect specific aspects of the status q
uo. The extent to which countries pursue change and maintenance is a functi
on of state preferences and of the relative capabilities of the country. Th
e theory has been tested in other circumstances and has been shown to expla
in international behavior well. In this paper we introduce our theory brief
ly and then apply it to three components of Chinese foreign policy - the in
itiation of international conflict the formation of alliances, and the dona
tion of foreign aid. We find that the incidence of the Chinese initiation o
f international conflict is strongly affected by the growth of its economy.
Nonetheless, our analysis indicates that, generally, China is significantl
y less active in seeking to bring about change in the international system
than is sometimes alleged. Furthermore, we argue that China has moderated i
ts foreign policy in response to Western diplomatic overtures. We suggest t
hat continued attempts to engage China diplomatically may prove fruitful.