China’s profound demographic and socioeconomic transitions over the last four decades have led to significant changes in its diaspora: increased numbers, different destinations, and diversified reasons for emigration. The national diaspora policy has undergone many shifts since China’s momentous economic reforms and opening to the world in 1978; but policy now converges on a multifaceted and intrinsically transnational system of engagement in the service of soft power. Studies have so far stressed domestic interests, drawing insights primarily from policy documents; but this article seeks to broaden the perspective, using a transnationally oriented framework to assist investigation of factors that range beyond the domestic. Using in-depth interviews with a variety of key informants and stakeholders, we systematically analyze features in four core policy dimensions that incorporate both international and domestic dynamics: diaspora institutions, dual citizenship, talent recruitment, and soft power. Finally, we explore implications for development (economic, sociocultural, educational) in both China and host countries. We draw the conclusion that China’s diaspora policy is shaped by a constellation of transnational factors—such as changing global and regional power structures, and competition in talent-recruiting and talent-retaining in the new technological era. China now deploys multi-scale linkages across several dimensions, expanding from economic to sociocultural and political spheres, to engage its diaspora effectively. Finally, these policy developments not only shape China’s internal development but also influence global sentiment, bringing new dynamics to bear global power relations.
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