significantly affect its economy or security. Due to their proximity to China, China's neighbors tend to have a greater economic impact on China or pose a more serious security concern. Subsequently, China seems to focus its foreign policy on its neighbors rather than on a global context. In security matters, this has resulted in China standing firm on controversial issues such as Taiwan, Spratly Islands, Tibet, etc. But despite Beijing's firm stand on security issues, economic and security multilateralism have developed albeit to different extents. Their acceptance is the result of a realization that globalization will continue to occur and that it is only natural for multilateralism to most effectively solve problems in such an interdependent world. But Chinese leaders make a careful distinction between economic and security multilateralism. Economic multateralism such as the WTO and APEC are generally welcomed by Chinese leaders while informal security is still preferred over formal security frameworks. Chinese leaders are fearful that a rigid security framework might be used to balance or contain Chinese power but are willing to cede to informal discussions on security to prove that China is a responsible international actor and because any refusal might result in China being left out of international decision making. However, except in the nuclear non-proliferation issue, China's new acceptance of multilateralism is based on a calculated tactical adjustment rather than a true fundamental shift in appreciation for multilateralism. China must feel secure in its new place as a global power before any true shift may occur. This can only happen if several conditions exist. First, Beijing must no longer feel threats of containment from its neighbors and the United States. Second, China must become content with its military power and begin to s...