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relations are everything.

Foreign Relations

The Tiananmen protest and tragedy had an immediate impact on China's foreign relations.

Other countries like the United States quickly imposed a series of diplomatic and economic sanctions against China. The details of those sanctions varied from country to country, but in general they involved the following

  • Suspension of high-level official visits

  • Official development assistance and export credits suspended

  • Sales of military and police equipment

  • The relaxation controls on the transfer of advanced technology to China was also postponed


Under pressure from the United States and members of the European Community, the World Bank and the Asian Development Bank agreed to halt lending to China. These official actions were supplemented by the unofficial and spontaneous decisions of private individuals and institutions in Europe, Japan, and the United States to reconsider the desirability of conducting business with China


Asian Financial Crisis Affects China.


This Crisis Started In Thailand With A Economic Collapse Of The Thai Baht (Currency Of Thailand)  After The Government Of Thailand Was Forced To Float The Currency Because Of The Lack Of The Supporting Of Foreign Currency To Fix Exchange Rate To The U.S.Dollar.


Before This Crisis Chinese Economy Was Growing A Lot. Although China Was Not Of The Most Affected Nations Like Indonesia, South Korea And Thailand, Suffered From A Loss Of Demand And Confidence In The Region.