Introduces the concept of a "balancing act" in China's elite's perceptions of external threats and opportunities that in one form or another have presented themselves ever since the creation of a unified Chinese state. Most of this episode, however, takes place in the 19th century when the threat was overwhelmingly from the seacoast with the arrival of aggressive Western traders and, ultimately, their countries' warships.

Japan became the first industrially and technically underdeveloped nation to modernize itself and become a great power. Its transformation took place under the authority of the young, newly installed Meiji Emperor whose profound symbolic importance to the Japanese people was skillfully used by a talented, elite group of government leaders. Such a rapid ascent led Japan to entertain imperial ambitions, resulting in a territorial clash with Russia and stressful changes in the society.