On the eve of the founding of New China, the Central Committee of the Communist Party of China sent a high-level delegation headed by Liu Shaoqi to visit the Soviet Union, and reached a preliminary agreement with the Soviet Union: the Soviet Union will provide 300 million US dollars in loans to New China, and send more than 200 senior technicians to China for technical guidance and assistance. At the end of 1949, Zhou Enlai and Mao Zedong successively went to the Soviet Union to discuss with Stalin on major issues such as Sino-Soviet political, economic and technological cooperation and China's utilization of Soviet funds and technology. 1In February 1950, China and the Soviet Union signed the Agreement on Loans from the Soviet Union to People's Republic of China (PRC), and the Soviet Union provided China with a long-term preferential loan with a total amount of1200 million old rubles (equivalent to 300 million US dollars), with an annual interest rate of 1%, which was paid in five years and paid off in 10. At the same time, in major construction projects, the Soviet Union will help China design and provide complete sets of equipment and major building materials.

Since then, from 195 1 to 1957, the Chinese and Soviet governments have signed 10 loan agreements, of which one is interest-free, nine are at an annual interest rate of 2%, and the repayment period is from 2 years to 10 years. The total amount of the above-mentioned 1 1 loan is127.4 billion new rubles, equivalent to RMB 5.368 billion. Among them, 76. 1% is used to purchase military equipment and materials, and 23.9% is used to purchase economic construction equipment and materials.

In the past few years, China has accepted more than 400 projects aided by the Soviet Union, including steel joint ventures, nonferrous smelting enterprises, coal mines and power stations, etc. 156 key projects. With the support of funds, technology and talents from the Soviet Union and Eastern European countries, China has established a number of basic industries necessary for national industrialization, laying a preliminary foundation for the establishment of a relatively complete industrial and national economic system in New China.

However, with the emergence of the chauvinism policy of the Soviet power, Sino-Soviet relations gradually became tense and deteriorated. 1In June, 959, the Soviet leaders violated the Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance, stopped providing loans, technology and talent assistance to China, suspended and tore up the signed contract, and at the same time withdrew experts ahead of schedule and forced to pay off debts. The government and people of China resisted the pressure, shared weal and woe and tightened their belts. 1964 paid off all the loans in advance, amounting to 5.742 billion yuan, including 5.368 billion yuan of principal and 374 million yuan of interest. At the end of 1968, all domestic public bonds were paid off. Since then, China has entered a period of 12 years of "no debt and no foreign debt".