In France, there is a lack of enthusiasm and funds for the war. 1949-50 Communist forces triumph in China and give military aid to the Vietminh. France turns to the US for aid, claiming it is a war against Chinese communist expansionism rather than a colonial war. After the US becomes embroiled in the Korean War, fighting communist North Korea and then the Chinese, it begins to supply military aid to the French. After a disastrous defeat at Dien Bien Phu, the French decide to withdraw from Indochina.
Peace talks take place in Geneva.
The July 1954 Geneva Agreement states that the country will be temporarily divided at the 17th parallel. The Vietminh will withdraw north of this line, the French south. Free elections to be held in July 1956 across both zones will decide the future government of a united Vietnam. In the meantime, neither zone to accept outside military help, foreign troops or join any military alliance. Laos and Cambodia to become free, independent and neutral.