The Yang-wu(洋務) movement for China's self-strengthening(自强) through learning the Western methods, was consistently connected with the maritime defense(海防) system from beginning to end. In other words, the object of the self-strengthening enterprises, i.e., the governmental arsenals and shipyards, various civil companies under government supervise, including mines and industries or shipping-business, modern diplomacy, was restricted by the maritime defense system, and couldn't go beyond it. The maritime defense meant China's efforts to defend the traditional system of imperial rule and the sphere of external influence against the maritime Powers. As Yang-wu movement was more advanced in 1870s, the patriotic ideas to guard the rights of sovereign state increasingly grew, combined with the traditional Sino-centric ideology of great unified(大一統) empire.
The second step of Yang-wu movement in 1870s, under Li Hong-zhang's leadership, fulfilled considerable development, according to being acquainted with the unceasing renovation of Western engineering and the worldwide competition among the Western Powers. This development led Yang-wu officials into the ideological devision between Us Huai army(淮軍) faction and Zuo Zong-tang's(左宗棠) Xiang army(湘君) faction, which resulted in the differentiation of direction guiding the defense strategy and Yang-wu reform. At the 1874 controversy between Zuo's land defense and Li's maritime defense, the officials of Li group were relatively more progressive than Zuo group, but also restricted by the passive defense strategy. Therefore, it's natural that Li couldn't persuade his opposers, i.e., relatively conservative Yang-wu officials and anti-foreign Qing-liu(淸流) faction.
Having more shrewd and practical views about the irresistible force of competitive Western civilization, Li Hong-zhang opposed the optimistic outlook that China could overtake Western Powers in near future through the short-term self-strengthening enterprises. This perspective in 1870s that was shared by early Yang-wu offial's, as Zeng Guo-fan(曾國藩) and Zuo himself in 1860s. Li's pessimistic outlook about competitive world, like the warring ststes(戰國) in ancient Chinese history, was reflected in his foreign policies that China gave up her rivalry with the Western Powers and only concentrated her defensive efforts on Japan, the rising small country. Li introduced commercial capital into the Yang-wu enterprises, and understood the importance of building the diversified, and professionalized vessels, naval or mercantile. But he chose to purchase naval warships from the Great Britain or Germany than to attempt to make the warships for himself for China's permanent independency.
In 1874 controversy, Li Hong-zhang proposed the institutional reform(變法), not total but partial. He was willing to reform civil service examination(科擧) system to nourish Yang-wu talents and concentrate official administration beyond provincial division. Nevertheless, these suggestions of institutional reform were all included within the sphere of maritime defense. In Yang-wu period, China's administration was separated into two different parts, traditional and Yang-wu. And this dual organization under maritime defense system was a great obstacle for successful reform, that could be fulfilled through the full reform of educational and official system. When the reformers take part in the offensive worldwide rivalry in the high seas together with western Powers, the formation of modern nation-state will become their imminent aim. Without the full institutional reform for this aim, Li continued to be defensive and lenient in front of foreign challenges. However, it's impressable that the modern system of diplomacy appeared by Li group in 1870s as the result of competitive world view, even if it still remained incipient in the development of modem nationalism.