The chapter outlines the contrasting paths of modernization taken by China and Japan in the 19th and 20th centuries. While Japan successfully transitioned into a modern nation-state and industrial power through its embrace of Western practices combined with traditional values, China faced turmoil and struggles, culminating in the Communist Revolution that sought to eradicate inequalities but resulted in a repressive political climate. The chapter emphasizes the importance of historical context and cultural identity in shaping national trajectories.