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This paper employs concepts and analytical frameworks drawn from Sociology, particularly collective memory, to examine China's attempts - and the limitations of those attempts - to improve relations with Japan in the new century. In particular, it focuses on a specific episode, the attempt to bring 'new thinking' to Sino-Japanese relations. It concludes that the difficulties and complexities are the product of many factors. In the first place, CCP is constrained by its own definition of nationalism and national identity. Secondly, Beijing's control mechanisms and its ability to direct nationalist discourse in ways convenient to itself are challenged by the rise of popular nationalistic sentiment. In addition, the rise of revisionist nationalism in Japan further complicates Beijing's stance toward Japan. The achievement of China's vision of harmonious world and of 'Mutually Beneficial' relations with Japan will depend on how well China handles the delicate matters of the construction of national identity and the basis of government legitimacy. [ABSTRACT FROM AUTHOR]