Today, China’s hegemony is not rooted in Marxism, but in traditional Chinese nationalism. Since two thousand years ago, the Chinese nation (“HuaShia”) considers itself the superior people, located in the center of the world. It views the surrounding foreign (“YiDi”) nations as barbarian peoples, or “beasts”, that must submit to the Chinese power. The Chinese nation further emphasizes uni-ethnicism—all Chinese people are the descendents of Huangdi, or inside the "Huangdi Zi Sun" family. This paper investigates the origin of Chinese nationalism. In early literature such as classic "Shang Shu", "Zuo Zhuan", the Hanji-using Chinese nation likens the contrasts of Chinese v. Barbarians to Saint v. Evil. In particular, the later Historical Records “ShiJi” names the earliest prehistoric tribal leaders Yellow Emperor (“HuangDi”), and strains an interpretation that HuangDi is the common ancestor of several nations (dynasties), including Shia, Shang, Chou, Chin, and other ethnic peoples. In far ancient times, in fact, different nations call their ancestors as “HuangDi” (“Yellow Emperor”), where the Hanji character “Huang” can be interpreted as either “Yellow,” or “Emperor.” This ambiguity of interpretation causes the misconception that these nations share the same ancestor. Some foreign invaders also claim themselves as “the descendants of HunagDi,” to obtain the legitimate seat of “the Chinese nation”. At the turn of twentieth century, the revolutionists against Ching again claim themselves as “the descendants of HunagDi.” Same slogan “Chinese nation” is shouted out again during Sino-Japanese War. However, the political appeal of “Yellow Emperor” has faded thousands year ago. Nations or peoples residing on the land ruled by today’s China are extremely diverse. Thus, terms such as "HuangDi Zi Sun" and "Chinese nation" are fictitious. This paper examines numerous literature in Hanji (Chinese characters), including the oldest available classic, and then deconstructs the prejudice of racism and the uni- ethnicity-based nationalism. Hence, this work may contribute to one of the earliest efforts to tackle this issue.