There is considerable uncertainty, indeed serious controversy, over the future role of China in the emerging structure of world politics. This article evaluates China's future role in the Asia-Pacific with reference to the larger debate between the proponents of the neo-realist and neo-liberal institutionalist schools of international relations theory. My position is that some moderation of the more alarmist views about the China threat seems reasonable, owing to the probable impact of modernization and globalization and quite simply the challenges of economic development which have been understated in most recent analyses of China.