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While most studies analyze Chinas motivations in supporting East Asian regionalism from an external security perspective, this paper seeks to supplement this approach by looking at the domestic sources of Chinas policy towards East Asian regionalism, to better understand the contrast in Chinas policy and its behavior. It will show that the domestic requirements of economic development has led Beijing to pursue regionalism with the economically dynamic East Asia as a defensive and offensive strategy against globalization. This explains why a developing China has been generous in its financial contributions towards the regionalist project. On the other hand, the nationalist climate within China has narrowed the political boundaries within which Beijing is free to pursue regionalism, as Chinese nationalism often obstructs the ability of Beijing to construct stable relations needed to advance cooperation. It is this tension between domestic economic requirements and Beijings need to appease its public nationalist appetite that has produced a variable policy on Chinas part towards East Asian regionalism.