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President Jimmy Carter continued down the path of his predecessor Richard Nixon on the normalization of relations with the Asian giant. Full diplomatic and trade relations were established between the United States and the People's Republic of China. The official relations that existed till then between Taipei and the mutual defence pact that was in existence between the United States and Taiwan came to an end. However through the provisions of the Taiwan Act the United States and Taiwan continued to trade with each other and unofficial recognition was awarded to Taipei. On the 1st of January 1979 diplomatic recognition was transferred by the United States from Taipei to Beijing. The Shanghai Communiqué which acknowledged the fact there was but one China and that Taiwan was an integral part of China was reiterated. Unofficial contacts with Taiwan continued.
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