the Cold War around the world. Rather than revert to isolationism, the United States took an active role in global politics following World War II to halt Communist expansion. After the war, Communist parties in Western Europe increased in prestige and number, especially in Italy and France, leading many to fear the whole of Europe would become Communist. The U.S. responded to this with the Marshall Plan, in which the U.S. financed the rebuilding of Western Europe and poured money into its economy. The Plan was a huge success and soon Europe was prosperous again, with many Europeans enjoying a standard of living close that in the U.S. (following World War II, the U.S. became very prosperous and Americans enjoyed the highest standard of living in the world). National rivalries ended in Europe and most Germans and Italians, for example, were happy to be living under democratic rule, regretting their Fascist pasts. In 1949, the North Atlantic Treaty was signed, creating the North Atlantic Treaty Organization or NATO. The treaty was signed by the United States, Canada, the Low Countries, Norway, Denmark, Iceland, Portugal, Italy, France, and Britain. NATO members agreed that if any one of them were attacked, they would all consider themselves attacked and retaliate. NATO would expand as the years went on, other nations joined, including Greece, Turkey, and West Germany. The Soviets responded with the Warsaw Pact, an alliance which bound Central and Eastern Europe to fight with the United States and its allies in the event of war. One of the first actual conflicts of the Cold War took place in China. Following the withdrawal of Japanese troops after World War II, China was plunged into civil war, pitting Chinese Communists against Nationalists, who opposed Communism. The Soviets supported the Communists while the Americans supported the Nationalists. In 1949, the Communists were victorious, proclaiming the People's Republic of China. However, the Nationalists continued to rule the island of Taiwan off the coast. With American guarantees of protection for Taiwan, China did not make an attempt to take over the island. A major political change in East Asia in this period was Japan's becoming a tolerant, democratic society and an ally of the United States. In 1950, another conflict broke out in Asia, this time in Korea. The peninsula had been divided between a Communist North and non-Communist South in 1948 following the withdrawal of American