This article examines the perceptions and misperceptions of the "Confucian culture threat" through an analysis of Chinese political, economic, and military capabilities. It contends that a simple causal model of culture and behavior, while partially capturing some salient aspects, does not fully explain the complexities and nuances of the dynamic interaction between China and the United States or between domestic and regional politics. In fact, the miscalculated growth of China's cultural and material strength and the resulting increase in fears and vulnerabilities have enhanced Washington's misperceptions of Beijing's strategic preferences and choices. The efforts to reshape such misperceived behavior and culture have also reinforced Beijing's suspicions about the U.S. China policy, and thus undermined both the bilateral relationship and regional stability. To foster mutual understanding, peace, and prosperity, imperative is to institutionalize East Asian security cooperation.