China’s new domestic reality marks a departure from the previous four decades of reform and transformation. Deng Xiaoping’s formula of “hiding your strength and biding your time” has been replaced with assertiveness and displays of power. In line with Chinese tradition, all major aims, visions, proposals, and decisions are once again statedefinedand state-focused. The personal rule of Xi Jinping, often referred to as the “Chairman of Everything,” dominates, creating a “Party of One.” At the same time, personal connections—China’s famous guanxi—have regained importance in institutions. This study, written by a former diplomat in Asia and a seasoned Polish sinologist and political scientist, focuses on three major issues: the current political system and governance in the PRC, so-called Xi-nomics, and China’s new global role following the pandemic andthe Russian aggression in Ukraine.