In 1979, Carter extended formal diplomatic recognition to the PRC for the first time. This decision led to a boom in trade between the United States and the PRC, which was pursuing economic reforms under the leadership of Deng Xiaoping.[211]
After the Soviet invasion of Afghanistan, Carter allowed the sale of military supplies to China and began negotiations to share military intelligence.[212] In January 1980, Carter unilaterally revoked the Sino-American Mutual Defense Treaty with the Republic of China (ROC), which had lost control of mainland China to the PRC in 1949, but retained control the island of Taiwan. Carter's abrogation of the treaty was challenged in court by conservative Republicans, but the Supreme Court ruled that the issue was a non-justiciable political question in Goldwater v. Carter. The U.S. continued to maintain diplomatic contacts with the ROC through the 1979 Taiwan Relations Act.[213]
During Carter's presidency, the U.S. continued to support Indonesia as a cold war ally, in spite of human rights violations in East Timor. The violations followed Indonesia's December 1975 invasion and occupation of East Timor. Under Carter's administration military assistance to Indonesia increased, peaking in 1978.