Despite its sudden rise, China has not engaged in balancing US power contrary to the prediction of the balance of power theory. The structure of a unipolar world restricts balancing which is effectively a revisionist act and disturbs the prevailing system whereas balancing is a status-quo behavior in a multipolar world because it has the effect of maintaining the current system. Additionally, the security dilemma generated by the challenger's rise also hinders in balancing. The dominant power is not the only one concerned about its position, but the other great powers are also concerned about the impending change in the system. The challenger's foreign policy is also encumbered by domestic factors like consensus among the elites and regime security. China is constrained by all these factors in both levels. Hence, the relative power of China does not explain all of its foreign policy behaviors.