Both hard and soft power are important in promoting China's dominance. It is possible to argue that China has risen significantly in terms of economic and financial measurement criteria over the last 30 years, developing and increasing its hard power. The nation has substantially increased its soft power at the regional and global levels due to its cultural dimension and, in particular, its efficient foreign policy. The present investigation sought to address the key question: What is the essence of China's soft power, and what principles are behind it? This study emphasises the importance of Confucian culture in understanding the fundamentals of Chinese soft power and demonstrates how China has been able to utilise its efficient tools of economic activity and foreign policy to leverage various opportunities in cultural diplomacy to achieve significant impact around the world, particularly in its soft power areas of focus.