This book provides an analysis on foreign policies in China. The first part of the book focuses on and analyses Chinese behavior (in that China might act as a 'status quo country' or aspire to be a 'hegemon or regional hegemon'), based on the theory of 'offensive realism'. According to this theory, it would be reasonable to think that Chinese behavior could become similar to that of United States'. However, from the viewpoint of economics, the difference between the United States' 'excess consumption' and Chinese 'excess saving' has been significant. The second part of this book summarizes the discovery and development of a method to predict and analyze the occurrence of 'non-economic situations' in terms of economic frameworks. The book proceeds to examine the future of Sino-Japanese relations to be one of maintaining a 'cold peace', which in turn can help to maintain military balance among China , the United States and Japan, The book further suggests that the crucial factor for this military balance is the availability of the 'nuclear umbrella' for Japan by the United States.