The medal was established in 1950 by the Central People's Government, in order to express thanks to Soviet Union for the early technical support and assistance provided following the founding of People's Republic of China in 1949. On February 14, 1950, China and the Soviet Union signed the Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance. On February 15, nearly 2,000 representatives held a celebration meeting, which attended by 40 Soviet dignitaries, including Peter Vladimirov, the Consul General of the Soviet Union in Shanghai. Mayor of Shanghai Chen Yi delivered a speech on behalf of the people of Shanghai at the celebratory meeting in support of the treaty.