This paper addresses value changes that have occurred to college?educated youth as China is going through drastic social transformations under Western influences. It explains how socio?economic and cultural forces interplay within a particular historical and political context in bringing about such notable changes as individualism, materialism and moral crisis. Through exploring young people's perceptions of the relative status of China versus the West, represented by the USA, the paper reveals a collective inferiority complex and resulting dislocation of cultural identities, manifested (...) as national nihilism and a magnified, empty patriotism. Conclusions are drawn on the importance of educating the younger generations with a sound knowledge of Chinese history, culture and traditional values, and a sensible perspective as regards Western civilization. (shrink)