Chapter 5 offers the first systemic examination of the strategic considerations that underpin an emerging trend that has not yet gained enough attention in either academic or policy circles – the growing role of counterterrorism in China’s foreign policy. China needs to enhance its force’s counterterrorism capabilities, protect the growing number of Chinese nationals and assets abroad, and build an image as a responsible international stakeholder. However, these goals conflict with China’s desire to minimize grievances arising from its economic activities, which could lead to the country becoming a target for international terrorist groups. Empirical analyses of original data on the counterterrorism joint military exercises held by China and foreign forces indicate that China is highly cautious and selective when it comes to these exercises. Military counterterrorism cooperation tends to closely follow Chinese economic investments.