The People's Republic of China (PRC) has weathered the storm of the global financial crisis with remarkable success. Preserving a substantial growth rate of its economy, China has become the main global engine of growth. A combination of macro-economic stimulus and Leninist party policies has prevented a major economic crisis which could have triggered a substantial social and political upheaval as the legitimacy of the current political order is heavily depending on development. While Western observers take the crisis performance as an indicator of the growing global influence of the PRC, the Chinese leadership takes a much more careful approach when repositioning itself in the global arena. Thus, the economic crisis of 2008 is not only a reminder of the interdependent nature of economic development and political stability in China but also of the interconnectedness of domestic policies and China's participation in global governance. © 2012 Nova Science Publishers, Inc. All rights reserved.