This paper will trace the evolution of Chinese perceptions about the nature of foreign policy issues, explore their origins in deep-seated beliefs and traditions of Chinese foreign policy, and assess the impact of current internal and external developments. It will focus on two key issues on China’s foreign-policy agenda with the European Union (EU), namely market economy status and the question of the lifting of the EU arms embargo, in the period from 2002 (when the issues first appeared on the diplomatic agenda) and 2007 (by which time expectations on both issues have gone down to close to zero). The paper will first assess how the way Chinese leaders perceive these issues has changed over time. It will then discuss the deeper roots of these meanings in the historical narratives of Chinese foreign policy. In a further step attention will shift towards explaining changes in issue perceptions. This includes, on the one hand, internal factors, most importantly changes with regard to the bureaucracies or policy makers involved, each of which tends to approach specific issues on the basis of their own institutional and personal histories. On the other hand, external factors will be explored, as actions by the EU or other international actors may affect the meaning of certain issues for Chinese foreign policy makers. The paper will build on the interpretive approach (as proposed by Bevir and Rhodes 2003) in tracing the deeper roots of continuity in the meanings of foreign policies. At the same time it will propose additional explanations that can account for change, located within a polity (see contributions to Sylvan and Voss 1998) or in its interaction with outside actors. The empirical research will be largely based on the analysis of policy statements (policy papers, public comments, interviews).