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Loans of giant pandas to American and Japanese zoos formed an important part of the diplomacy of the People's Republic of China in the 1970s as it marked some of the first cultural exchanges between the PRC and the West. This practice has been termed "Panda Diplomacy". By the year 1984, however, pandas were no longer used as agents of diplomacy. Instead, China began to offer pandas to other nations only on 10-year loans. The standard loan terms include a fee of up to US$ 1,000,000 per year and a provision that any cubs born during the loan are the property of the People's Republic of China. Since 1998, due to a WWF lawsuit, the U.S. Fish and Wildlife Service only allows a U.S. zoo to import a panda if the zoo can ensure that China will channel more than half of its loan fee into conservation efforts for wild pandas and their habitat. In May 2005, the People's Republic of China offered Taiwan (Republic of China) two pandas as a gift. This proposed gift was met by polarized opinions from Taiwan due to complications stemming from cross-strait relations. So far Taiwan has not accepted the offer.

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