While accepting that the migration-development nexus is best understood from a transnational perspective, recent studies analyse this nexus in a partial way rather than holistically. We review the literature, then attempt an enriched account of the complex and rapidly evolving relationship between diaspora and development in Chinaa country undergoing profound demographic, economic and social changes. Using in-depth interviews with a variety of key informants or stakeholders and a transnationally oriented framework, we analyse features across three core policy dimensions that incorporate both international and domestic dynamics: citizenship, top talent recruitment and soft power. Our findings contribute to the literature on Chinese-state-diaspora relations. They show that China's approach to its diaspora policy and development, practice and outcomes reaches with powerful new effects across national borders. The transnational-relational perspective gives an optimal paradigm for researchers and policymakers to understand changing strengths and complexities in interactions (contestation, conflict, negotiation, cooperation) between multi-scalar and multi-dimensional linkages, and to form diaspora policy and engagement programmes responsive to unprecedented global political, economic and social disruption.