II. The PRC's diplomatic policies and responses around the world 1 Three major policies made by the newly-established PRC 1) policy of " setting up a new stove set up diplomatic ties with the Prc while ending ties with the kmt government take friendly attitudes to the prc diplomatic ties be based on principles of equality mutual benefit, and respect territorial sovereignty establish diplomatic ties with the Prc through negotiation/talksII. The PRC’s diplomatic policies and responses around the world 1 Three major policies made by the newly-established PRC : 1) policy of “setting up a new stove” ◼ set up diplomatic ties with the PRC while ending ties with the KMT government ◼ take friendly attitudes to the PRC ◼ diplomatic ties be based on principles of equality, mutual benefit, and respect territorial sovereignty ◼ establish diplomatic ties with the PRC through negotiation/talks