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The communist takeover of China was a major setback in America's policy of A. containment B. neutrality C. economic development D. isolationism
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Definitely Containment. The thought of having the world's most populous nation fall to communism was simply a nightmare come true. It did not serve the policy of isolationism because America could simply not care about it. An example of a major failure in the isolationist policy was World War II where Hitler simply rose to power undeterred. The Communist Revolution didn't have a huge impact on America's economic might. In terms of neutrality, America wasn't really neutral at the time.
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