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This paper will first explore some essential theoretical backgrounds, which contribute to the understanding of the theory of hegemonic stability (a core strand of IPE theory) with a view to examine some empirical challenges of US hegemonic power after the Second World War. Secondly, it will go on to look at the notion of neo-liberalist regional development in East Asia to understand in what ways China’s entitlement creed has been increasingly instrumental in modifying the region institutional context. Third, it attempts to apply the constructivist approach in trying to locate the culturally embedded soft power entitlement of which China has been trying to capitalize on.

International Relations Theory in Flux in View of China’s ‘Peaceful Rise’