Applying bargaining theory of international conflicts, we examine the successes and challenges of China’s strategic choices in its ascent after the Cold War. We suggest that China needs to alleviate information and commitment problems in order to rise peacefully. Since 2008, China’s “peaceful rise” strategy has faced serious challenges because of its “assertive turn” in diplomacy. We argue that China has not alleviated or settled these two problems successfully because of its ambiguous “core interest” diplomacy and undecided attitude regarding multilateral institutions in resolving the maritime disputes. China should engage in rule-based, institution building, such as a security community between China and ASEAN, to reinforce its peaceful rise commitments.