Chinese Nationalism

Picked up an issue of Newsweek while in London, and found the following article an interesting read:
http://www.newsweek.com/id/131751

It's interesting to realize that though we are more connected to each other globally through the internet and ease of travel, we still know relatively little about each other's cultures. Whether we're talking China (or any of the Asian cultures) or the Middle East, how much does the West really understand? How much of our problems today are due to lack of understanding?