An important feature of modern-day China has been the rise of civil society and political protest. Suisheng Zhao (2004) identifies three types of social movements: ethnic nationalism, liberal nationalism and state nationalism. The first two can be considered "populist", or citizen-initiated, social movements. They usually entail rebellion against the status quo and fragment the Chinese people. The last, state nationalism, takes as its primary goal the unification of the citizenry.

Ethnic movements see China as being composed of politicised groups defined by common culture and descent, shared historical experiences, and usually a common language. The Tibetan independence movement is an example of an ethnic movement. Before being taken over by the People's Liberation Army (PLA) in 1950, Tibet was a sovereign nation. Since then, the Chinese government has violently suppressed the ongoing Tibetan separatist movement. The Government has also encouraged the Han Chinese "core" to settle in Tibet, and has used international human-rights criticism to shore up support by accusing foreigners of meddling in domestic affairs. Although ethnic movements in Tibet have resulted in instability, they have been managed so as to minimise divisive effects.

Nevertheless, other challenges remain. Religious organisation Falun Gong has become increasingly influential. A 1998 report showed there were 70 million practitioners of Falun Gong in China. In a show of solidarity in 1999, about 10,000 Falun Gong followers peacefully gathered near Chinese Communist Party (CCP) headquarters in protest against brutality. While the regime quickly rounded up followers and sent many to prison, the message of the Falun Gong was crystal clear: those who demonstrated against the administration were in effect challenging official patronage of religion and advocating a fundamental right to free religious practice. In the short-term, control has been maintained through repression, yet the viability of such an approach is questionable.

In keeping with the Fourth Generation leadership's moderate approach, tensions between the Han majority and non-Han minorities have been handled tactfully. Although Han Chinese are a key source of support for the CCP, the Politburo recognises that engaging in dialogue that pits national identities against each other would be counterproductive, as it would validate the claims of the 7 million Tibetans, who could then make demands under the "banner of nationalism"

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