In this chapter, we focus on the historical process, psychological categorization, and complexity of different ethnicities (minzu) within China. Because the Central Kingdom was repeatedly defeated during the Opium Wars (1840s), China started to embrace in conception and practice the nation-state ideology. Sun Yat-sen and the Communists redefined or recategorized the Central Kingdom and its ethnic configuration in their own ways. New versions of taxonomy of ethnicities or Minzu, which came out as a result of a market economy, modernization, and cultural interaction, are posing challenges to ethnic and cultural identity within the Central Kingdom (zhongguo). Rooted in the Thirdness theory and social recategorization model, the concept of ethnicity (or ethnic identity), or zhongguo culture, is a changing process (i.e., Thirdness) in China. To understand it, we must first understand Chinese history, behavior, beliefs, and politics. This very process of change and flexibility shows that there is no ethnic group free from the influence of other ethnic groups. Ethnographically, the concept of zhongguo Ren (i.e., Chinese), which includes the Han, the Mongols, the Manchurians, the Zhuang, the Hmong, the Tibetan, the Uygur, and many others, was a symbolic and evolutionary process of almost all ethnic groups in China. (PsycINFO Database Record (c) 2016 APA, all rights reserved) (Source: chapter)