With the collapse of the Soviet Union, the world has been moving toward a multipolar and peaceful state. Economics has replaced military affaivs to become the central issue of every country. Since 1978, the PRC's reform policy has resulted in rapid economic development. The end of the Cold War created a benficial environment for the PRC's reform policy. If the PRC wants to sustain cconomic development, stability of its environment will be the key point precondition. The Confidence-Building Measures are a plan for the resolution of misuderstandins. Iin the mid-1980s, the PRC changed its passive position regarding CBMs, successfully applying this measure to improve relationships with neighboring states.