The sharp decline in Chinese stock markets a few months ago is a reminder of two things.



The first is the continued fragility of the Chinese market. The second is that any economic dysfunction has political implications, both in Chinese domestic and foreign policy.



This, in turn, will affect Chinese economic performance. It is essential, therefore, to understand Chinese national strategy.



The People’s Republic of China (PRC) has been portrayed as an increasingly aggressive country prepared to challenge the United States.



At the same time, aside from relatively minor forays into the South and East China Seas, China has avoided significant involvement in the troubles roiling in the rest of Eurasia.



There is a gap between what is generally expected of China and what China actually does.



To understand China's strategy, it is helpful to follow the logic inherent in the following five maps.