China gained a strategic victory over the United States in disputes over the islands of Quemoy and Matsu in 1954 and 1958. Both times, China shelled the islands with artillery but backed down after the United States threatened nuclear retaliation. However, in 1960 the United States suffered a loss when Soviet leader Khruschev produced evidence at a conference that the U.S. had been spying with a U-2 plane, despite U.S. denials, damaging relations between the two countries.

1. 11. China (Win)
• Islands of Quemoy & Matsu (1954)
• Truman lifted blockade of 7th fleet
• The Belief was to Unleash Chiang into China-invasion from Taiwan
• China starts attacking Quemoy/Matsu w/artillery
• What does US do? Threaten w/ nukes!!
• China threatens again in 1958 (Shelling)
• Again China backs down!

2. 12. U-2 Incident (Loss)
• In 1960 a U-2 spy plane
crashes into USSR
• Piloted by Francis Gary
Powers
• US denies any knowledge-
it’s a weather balloon
• Khruschev produces
evidence of plane and pilot
at Paris Conference
• Ices Relations w/USSR