Li Guangyao thinks that China will pursue supremacy via economic strength instead of military force. China will not engage in arms race with the U.S. because China will definitely lose. China will expand its economic relations with East Asian countries as well as dragging Southeast Asia countries and Japan into its sphere by a market of 1.3 billion people. However, China might make mistakes due to the issues of institutional reform, business culture reform, corruption reduction and creation of new thoughts.