China and the United States
Identification Diplomatic and economic relations
between China and the United States
The political, economic, and cultural relationship between
China and the United States warmed continuously
throughout the 1980’s. It suffered a serious setback, how-
ever, with the bloody suppression of student demonstrators
in Beijing’s Tiananmen Square in June, 1989. The United
States also maintained cordial relations with Taiwan even
after the end of formal diplomatic relations in 1979.
By January, 1980, the United States and the Commu-
nist People’s Republic of China (PRC) had enjoyed
their first year of normal diplomatic relations. The
United States hoped to play the PRC off against the
Soviet Union to gain advantages in the Cold War.
Beijing’s decision to join the U.S.-led boycott of the
1980 Summer Olympics in Moscow in response to
the Soviet invasion of Afghanistan in 1979 impressed
Washington. In November, 1980, the Chinese trial of
the communist extremists the Gang of Four, which
ended with their convictions in 1981, further con-
vinced the United States that China under the lead-
ership of Deng Xiaoping could be an American
partner. China, for its part, was encouraged by the
willingness of the United States to withdraw full rec-
ognition from Taiwan, which the Chinese asserted
was a part of the People’s Republic. Taiwan, which
referred to itself as the Republic of China, claimed
to be the nation’s legitimate government. It had thus
been necessary for the U.S. government to withdraw
its recognition of Taiwan’s Nationalist government
before it could fully recognize the People’s Republic
as the legitimate government of China. The Ameri-
cans still treated Taiwan as a diplomatic entity, how-
ever, conducting trade with the country and accept-
ing its passports, for example.
The People’s Republic and the United States After
strengthening political ties in 1980, China reacted
angrily to continued U.S. arms sales to Taiwan in the
spring of 1981. The reaction may have been in-
tended as a test of incoming Republican president
Ronald Reagan. Many conservatives in the United
States still looked fondly at the staunchly anti-Com-
munist Taiwanese government. Reagan was aware
that the friendship of the People’s Republic could
be a tremendous asset in the Cold War against the
Soviet Union. He therefore decided to send U.S. sec-
retary of state Alexander Haig to Beijing to negoti-
ate a resolution to the situation in June, 1981. Vice
President George H. W. Bush also visited in May,- On August 17, 1982, China and the United
States agreed that the United States would decrease
its arms sales to Taiwan, while China would pledge it-
self to a peaceful solution of its conflict with the Na-
tionalists.
Deng Xiaoping’s ongoing emphasis on economic
liberalization and modernization made him popu-
lar in the United States. In 1982, Deng encouraged
Western companies to invest in China’s new special
economic zones, as well as in the Chinese manufac-
turing and hospitality industries, ideally through
joint ventures. Granted Most Favored Nation status
in 1980 by the U.S. Congress, China developed a ro-
bust trade relationship with the Americans. By 1985,
China and the United States traded goods worth
$3.86 billion each. By 1989, however, Chinese ex-
ports to the United States were worth $11.99 billion,
while U.S. exports had reached only $5.76 billion,
creating a U.S. trade deficit that worried American
economists.
U.S.-Chinese cultural relations improved steadily.
China allowed many of its citizens to study in the
United States, and a significant number arrived in
1983 and 1984. American intellectuals, scholars, and
English teachers were invited to China, as were tour-
ists. In 1984, the cordiality of U.S.-Chinese relations
was demonstrated by President Reagan’s visit to
Beijing and Chinese prime minister Zhao Ziyang’s
voyage to Washington, D.C. In October, 1985, Vice
President Bush visited China.
Tiananmen Square Incident Up to 1989, there were
few issues troubling U.S.-Chinese relations. Ameri-
can criticism of China’s harsh policies in Tibet did
not substantively affect U.S. policy. American eco-
logical worries about the Three Gorges Dam project
in China also did not influence the Reagan adminis-
tration’s actions. American fears for Hong Kong
were alleviated by the Sino-British agreement of- When the newly elected President Bush visited
Beijing in February, 1989, he received a warm wel-
come.
A setback came in the spring of 1989. Since April
17, 1989, Chinese students had been demonstrating
in Beijing’s Tiananmen Square, demanding demo-
cratic reforms for the country. On May 30, they
brought a plaster “Goddess of Democracy and Free-
210 China and the United States The Eighties in America