Examining the policies of the PRC towards Chinese overseas, this paper argues that since the 1990s China has been actively extending its territorial reach to encompass Chinese living outside the sovereignty of the Chinese state. Gradual changes in conceptions and methods to establish allegiances and attract increased financial investments and remittances have re-configured the Chinese state's relationships to Chinese living overseas. By analysing official documents, and through interviews with officials in Fujian (1998–2000), the author identifies two major political shifts in conceptualization. The first appeared in the late 1970s when Chinese citizens living mainly in South-East Asia were again recognized as an important source of revenue to China. A decade later, new policies were introduced appealing to ethnic Chinese and “new migrants” who had left China after 1978. It is discussed how this political adjustment fundamentally transformed the approach towards the Chinese overseas from passive anticipation of being able to gain resources to active state liaison with ethnic Chinese by calling upon their cultural and national loyalties to China.