On December 26, 2003, then Chinese President Hu Jintao vowed to maintain the path of ”Peaceful Rise” and an independent and peaceful diplomatic policy on the 110th anniversary celebration of Mao Zedong’s birthday. This declaration officially signified that China has already obtained the political confidence of a great power. With the continued improvement in PLA Navy’s far sea operational capabilities, it is worthy of further study and research that whether the PLA Navy would follow the 19th century sea-power approach and change the regional balance currently recognized by the United States and Western countries. Deng Xiaoping revised China’s military strategy from Mao Zedong’s “fighting an early, large-scaled nuclear war” to “active defense” in 1983. Starting from Jiang Zemin’s first Defense White Paper, subsequent Chinese Defense White Paper all stressed a defense policy that would “never seek hegemony, never seek expansion,” a military strategic guideline that says “we will not attack unless we are attacked, and if we are attacked, we will certainly fight back,” and that China’s development will not follow the “strong nations are bound to seek hegemony” principle. It is intriguing to note that the United States, Japan, and other Western powers do not believe China’s claim, no matter it was due to historical development norms, great power’s ideology, or the strategic considerations of domestic interest groups in those powerful countries. It is an inevitable fact that the development of international relation theories has always been dominated by the United States from the very beginning, because the United States is still the only super power in the world. This thesis attempts to explore the future transition and possible direction of China’s naval strategy from both a Chinese historical foreign policy perspective and a Western realism “balance of power” perspective. In addition, the development process of the PLA Navy and its possible reaction to threats will also be discussed. Finally, the PLA Navy’s future development direction will be analyzed and predicted based on Chinese people’s character, knowledge of the ocean, as well we international and environmental factors.