The communist takeover of China was a major setback in America's policy ofSelect one of the options below as your answer:A. containmentB. neutralityC. economic developmentD. isolationism
It's probably more accurate to say that it was a failure of America's policy of (A) containment. After WW2, Truman and his administration adopted the policy of containment to stem the spread of Communism. China going Communist would be seen as a setback for that.
Mao Zedong pretty much ran Chiang Kaishek and his U.S. backed Nationalist party off to Formosa (Taiwan). That must have been about 1947-48. It wasn't too long after that that the communist Chinese poured into Korea (late 49 I think). So, I'm going with containment. I remember the end of WW II (barely) but not the details.
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