Deng Xiaoping's era was a turning point for China's international relations, especially with capitalist countries. He realized that for China to be an economic powerhouse, it needed to collaborate, not fight with capitalist nations.

• Pragmatism: Deng believed in a realistic and practical approach rather than getting bogged down by past conflicts or ideologies.
• Reconciliation: Instead of conflict, reconciliation was seen as the way forward.
• Respect: It was essential to respect former adversaries to turn them into trade allies.
• Integration with Financial Institutions: Deng realized that China had to become part of global financial systems and institutions that drive capitalism.

• Start of a New Chapter: The USA shifted its recognition from Nationalist Taiwan to the People's Republic of China (PRC). This was a significant move indicating improving ties.
• 1979 - A Key Year: This year saw the establishment of full diplomatic ties between China and the USA. A milestone in their relationship.
• Deng's US Trip: Deng Xiaoping's 1979 visit to the USA was more than just a trip. He was welcomed enthusiastically, indicating a warming relationship.
• But, Remember...: This newfound friendship didn't erase past suspicions overnight. However, the groundwork for diplomacy and trade had been laid.
• Human Rights - A Roadblock: Differences in human rights views existed. Yet, these differences were not considered significant enough to sever ties.
• US Recognition: US President Clinton's speech was a testament to the acceptance of China's place in the global arena.