Correct Answer:
B. China
China is the country that practices "panda diplomacy." This unique diplomatic strategy involves gifting or loaning giant pandas to other nations as a gesture of goodwill and to foster stronger international relations. The tradition dates back centuries but gained significant prominence in the 20th century, particularly after the establishment of the People's Republic of China. Pandas symbolize friendship and peace. While Japan, South Korea, and Thailand have received pandas, they are not the originators of this specific diplomatic practice.