Flags at both the American embassy in Taipei and the Taiwanese embassy in the United States are lowered for the last time as U.S. relations with Taiwan officially come to an end. On January 1, 1979 the United States officially recognized the government of the People's Republic of China in Beijing.
The American decision to sever relations with Taiwan and grant recognition to the People's Republic of China was hotly resented by representatives of the Chinese Nationalist government. In a brief ceremony accompanying the lowering of the Taiwanese flag, a Chinese Nationalist official declared that the action "did not mean that we are giving up our fight against communism." He strongly criticized American President Jimmy Carter for cutting off ties with "a loyal friend and ally of the United States" in exchange for normalizing relations with "our enemy, the Chinese Communist regime." American officials had little comment, except to assure those seeking visas and other services in Taiwan that the U.S. embassy would continue to help them until March 1, 1979. At that time, a "nongovernmental" office would take over those duties.
It was a rather quiet end to nearly 30 years of American refusal to grant official recognition to the communist government of mainland China. The U.S. decision to maintain strong relations with the Nationalist government on Taiwan had been the main roadblock to diplomatic relations between America and the People's Republic of China. By the late 1970s, the desire for closer economic relations with communist China and the belief that diplomatic relations with the PRC might act as a buffer against Soviet aggression led U.S. officials to view continued relations with Taiwan as counterproductive. President Carter's decision to sever relations with Taiwan removed that obstacle. One of the oldest and most antagonistic relationships of the Cold War seemed to be thawing.