“In investing, what is comfortable

is rarely profitable”

–Robert Arnott

In 1989, the Chinese government smashed thousands of demonstrators gathered at the Tiananmen Square in central Beijing to protest for freedom and autonomy. As tens of thousands of protesters were killed and arrested, the American government reacted with dreadfulness. The then president of the United States, George Bush instantaneously ordered sanction against China which included termination of talks between high-level diplomats who were in discussions on nuclear cooperation, ban on arms sale etc. The president thought these sanctions were enough to reflect American exasperation over the events of Tiananmen Square but several members of Congress shared views that the Chinese deserve harsh measures for its egregious violations against humanity. Over the president’s objection, House of Representatives without opposition passed a new set of sanctions which focused on trade relations such as suspending funds for the expansion of US-China trade or banning shipment of police equipment. These sanctions were enacted and were unable to be lifted off until China affirms to progress in the field of human rights. The Chinese remained obdurate and incorrigible in the face of these sanctions till 1990 when Chinese began releasing protestors. However, economic gains won over moral umbrage as American government spent years cultivating better relations with China, which Americans saw as a growing power. Also American businessmen anticipated prospects into the Chinese market, so in following such pressure, most of the sanctions were forgotten over the span of next few years.