Due to unprecedented economic growth China has become one of the biggest players in international relations. Yet its present strength is based mostly on fi nancial and economic assets with only limited soft power capabilities. Th e last years have shown Beijing’s increased openness towards managing its image abroad by organising international events, disseminating the Chinese language and culture and raised diplomatic activity. Th e paper aims at identifying China’s soft -power capabilities in traditional fi elds of culture, political values and foreign policy, and evaluating the implications and limits of its soft -power strategy. At the beginning of the paper the defi nition of the term soft power is given, with the short characteristics of this phenomenon. Th en the general shift s in China’s foreign policy are presented, followed by the analysis of the soft -power instruments used by the government in Beijing. In the fi nal part of the essay consequences and limits of China’s soft power are enumerated.