Why did China renounce right to war reparations from Japan in a 1972 treaty?
China waived its demand for war indemnities from Japan. (This demand was first made in the mid-1950s; the war reparations claims totaled as much as the equivalent of US$50 billion.) Diplomatic relations were to be established as of September 29, 1972. Japan and China also agreed to hold negotiations aimed at the conclusion not only of a treaty of peace and friendship but also at agreements on trade, shipping, air transportation, and fisheries. Sino-Japanese trade grew rapidly after 1972. In January 1974, a three-year trade agreement--the first of several working agreements covering civil air transportation, shipping, fisheries, and trademarks--was signed. Arrangements for technical cooperation, cultural exchange, and consular matters were also undertaken.