On August 5, the United States halts military aid to the ROC on Taiwan after the U.S. State Department issues its white paper on U.S. relations with China. On October 1, Mao officially proclaims the establishment of the People's Republic of China (PRC) and stresses a "One China" policy. On December 10, Chiang Kai-shek and KMT forces complete a withdrawal from the mainland to Taiwan, and Chiang declares Taiwan as the provisional seat of the ROC government.

Proclamation of the Central People's Government of the People's Republic of China, Mao Zedong