(i) After the Chinese Revolution, General Chiang Kai-Shek led his followers across the Taiwan strait and set-up the Republic of China. Republic of China continued to represent China in the UN till 1971.

(ii) Before 1950, the USA followed the policy of not interfering in Taiwan in the event of attack by the Communist China. But after the Korean War in 1950, the U.S. policy changed and after 1953 the USA agreed to massive American rearmament of Taiwan. 

(iii) In 1954, the People’s Republic of China (PRC) declared that Taiwan had to be liberated and accordingly started military operations.

(iv) The US on its part threatened to use nuclear weapons and war between the PRC and the US seemed imminent. Communist China showed an inclination to back down and the NATO states declared they would not support American use of nuclear weapons.

(v) During this period the leaders of the PRC believed that the advances made by the USSR in the development of long range delivery systems for nuclear weapons, ICBMs, had tilled the European balance of power in favour of the Eastern bloc.

(vi) PRC leaders were not sure what USSR military resurgence would mean for them, perhaps it would make the USA less likely to threaten the PRC.

(vii) When the PRC bombarded Quemoy in 1957, it was the USSR that pressured the PRC to stop.

(viii) Ultimately direct Sino-USA war was avoided, but Chinese communist suspicion of the USA and USSR increased.