After the military victory of the communists, the Republic of China government fled to Taiwan.

 Some history is in order. Before 1949 the government of the Republic of China issued a large volume of long-term sovereign gold-denominated bonds, secured by Chinese tax revenues, to private investors and governments for the construction of infrastructure and financing of governmental activities. Put simply, the China we know today would not have been possible absent these bond offerings.

In 1938, during its conflict with Japan, the Republic of China defaulted on its sovereign debt. After the military victory of the communists, the Republic of China government fled to Taiwan. The People's Republic of China was eventually recognized internationally as the successor government of China. Under well-established international law, the "successor government" doctrine holds that the current government of China, led by the Chinese Communist Party, is responsible for repayment of the defaulted bonds. ...