The dominant Chinese group had a sense of common identity as far back as the mythical past that Confucius regularly alludes to. Since Confucius lived around the 6th century BC, that puts the sense of Chinese nationhood at least a few centuries before that.
As for the locality of the identity being more responsive to the needs of its constituents, maybe, but I'm not going to theorise on that, as I have little interest in doing so. However, the other end of that argument is that, the larger the body, the more heft it has in making an argument. The relative decline and rise of the UK and US is evidence enough of this. Even if the most local body of identity is the most responsive of all to my demands, I'm not going to cut myself off from the larger body. I have no interest in brave last stands.
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