<P> The rapprochement with the United States benefited the PRC immensely and greatly increased its security for the rest of the Cold War . It has been argued that the United States, on the other hand, saw fewer benefits than it had hoped for, inasmuch as China continued to back America's enemies in Hanoi and Pyongyang . Eventually, however, the PRC's suspicion of Vietnam's motives led to a break in Sino - Vietnamese cooperation and, upon the Vietnamese invasion of Cambodia in 1979, the Sino - Vietnamese War . Both China and the United States backed combatants in Africa against Soviet and Cuban - supported movements . The economic benefits of normalization were slow as it would take decades for American products to penetrate the vast Chinese market . While Nixon's China policy is regarded by many as the highlight of his presidency, others such as William Bundy have argued that it provided very little benefit to the United States . </P> <P> In May 1973, in an effort to build toward formal diplomatic relations, the US and the PRC established the United States Liaison Office (USLO) in Beijing and a counterpart PRC office in Washington . In 1973 to 1978, such distinguished Americans as David K.E. Bruce, George H.W. Bush, Thomas S. Gates, Jr., and Leonard Woodcock served as chiefs of the USLO with the personal rank of ambassador . China made clear that it considered the Soviet Union its chief adversary, and urged the United States to be powerful, thereby distracting Moscow . Liaison officer George Bush concluded, "China keeps wanting us to be strong, wanting us to defend Europe, wanting us to increase our defense budgets, etc ." Bush concluded that American engagement was essential to support markets, allies, and stability in Asia and around the world . </P> <P> President Gerald Ford visited the PRC in 1975 and reaffirmed American interest in normalizing relations with Beijing . Shortly after taking office in 1977, President Jimmy Carter again reaffirmed the goals of the Shanghai Communiqué . Secretary of State Cyrus Vance, Carter's National Security Advisor Zbigniew Brzezinski, and senior staff member of the National Security Council Michel Oksenberg encouraged Carter to seek full diplomatic and trade relations with China . Although Brzezinksi sought to quickly establish a security relationship with Beijing to counter the Soviet Union, Carter sided with Vance in believing that such a deal would threaten existing U.S. - Soviet relations, including the SALT II negotiations . Thus, the administration decided to cautiously pursue political normalization and not military relations . Vance, Brzezinski, and Oksenberg traveled to Beijing in early 1978 to work with Leonard Woodcock, then head of the liaison office, to lay the groundwork to do so . The United States and the People's Republic of China announced on December 15, 1978 that the two governments would establish diplomatic relations on January 1, 1979 . </P> <P> In the Joint Communiqué on the Establishment of Diplomatic Relations, dated January 1, 1979, the United States transferred diplomatic recognition from Taipei to Beijing . The US reiterated the Shanghai Communiqué's acknowledgment of the Chinese position that there is only one China and that Taiwan is a part of China; Beijing acknowledged that the American people would continue to carry on commercial, cultural, and other unofficial contacts with the people of Taiwan . </P>

When did the usa formally recognize the people’s republic of china