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This paper presents perceptions of China’sConfucius Institute project held by different stakeholders inChina and the USA. A number of studies have been pub-lished in each place since the first establishment of Con-fucius Institutes in 2004, but there has not been acomparative study to date. The study, which draws onmedia reports related to significant milestones in thedevelopment of Confucius Institutes, shows that, in theUSA, the institutes are viewed with a considerable degreeof ambivalence. They are attractive for universities seekingengagement with China, but also seen as a threat to aca-demic freedom. Domestically, Confucius Institutes areperceived as a way to soften China’s international imageand to promote the Chinese language and culture, althoughsome concerns have been raised about the cost and trans-parency of the initiative. The paper highlights the contro-versial aspects of the institutes and outlines some of thechallenges facing China in making the strategy effective.