This research aims to analyze the international political economy of rising China since the mid 1990s. The main question it tries to answer / why in the early 21st century, Chinese officials defined China&amp / #8217 / s position within the international system as Peaceful Rise in theory, in rhetoric and in policy. The research studies the question based on analysis of international political economy of China&amp / #8217 / s reform process within a historical perspective. Given China&amp / #8217 / s history-long &amp / #8216 / &amp / #8216 / catching up with the West&amp / #8217 / &amp / #8217 / as the main drive behind the determination and the guidance of China&amp / #8217 / s strategy at home and abroad throughout the political history of modern China, the thesis argues that &amp / #8216 / &amp / #8216 / China&amp / #8217 / s Rise&amp / #8217 / &amp / #8217 / has became the new strategy of China&amp / #8217 / s catching up objective towards the 21st century. Chinese leadership formulated the concept of Peaceful Rise as the discourse of the new policy to both domestic and external audiences. Building up Harmonious Society and being a Soft Power in international order have been designed as the policy components of new strategy. Chinese leadership also used the concept of Peaceful Rise as the theory of the legitimization of the new strategy of &amp / #8216 / &amp / #8216 / China&amp / #8217 / s Rise&amp / #8217 / &amp / #8217 / and its policy components.