The Second Sino-Japanese War had seen tensions rise between Imperial Japan and the United States; events such as the Panay incident and the Nanking Massacre turned American public opinion against Japan. With the occupation of French Indochina in the years of 1940–41, and with the continuing war in China, the United States placed embargoes on Japan of strategic materials such as scrap metal and oil, which were vitally needed for the war effort. The Japanese were faced with the option of either withdrawing from China and losing face or seizing and securing new sources of raw materials in the resource-rich, European-controlled colonies of South East Asia—specifically British Malaya and the Dutch East Indies (modern-day Indonesia). In 1940, Imperial Japan signed the Tripartite Pact with Nazi Germany and Fascist Italy.