External environment is critical for a country’s development. Whether China is able to complete its peaceful rise is not just a question of the international environments impact upon China, it is more importantly an issue of how China and the world interact. Great nations have the power to shape and change their environments. A country can develop in both favorable and unfavorable circumstances, but basic strategic decisions by the leadership are critical. Domestic climate has a much more powerful impact on nation than the external order to the point that domestic climate can mitigate or change the negative impact of the outside world. Globalization means that peaceful, passive development is only part of the battle – states must work to create the environment in which they exist. For China, creating a new international order is a long process during which safeguarding the rational factors within the current order should be a primary goal of Chinese diplomacy.