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Following the Tet Offensive, thousands of Chinese troops came flocking south across the border, lending reinforcements to the North Korean army. Together, they succeeded in pushing UN forces back to South Korea.
On Administrative Earth, however, the American-led UN succeeded in not only repelling the Chinese assault, but on pushing the invading forces back north across the border. Chinese Nationalists, realizing the panicked state of the Communist Party, promptly rebelled. Together, they and the UN successfully overthrew the Communist Party in China, leading to a democratic state (The Nationalized Democracy of the Orient).
Revitalized by their victory in Korea, the UN grew to a powerful role very quickly. Many of the conflicts we know of in our own world (i.e. Vietnam War, Gulf War) were either avoided completely or quickly stomped out. This was known as the Pax Universita.
Negative Effects and Recession
Unfortunately, as China had become a democratic state, the massive employment reforms run by the communists never occurred. Thus, China was never able to solve its labor crisis and never became the economic power it is today. The nation faced extreme unemployment and deplorable health conditions, before it was economically consolidated by the Japanese and reformed into the Session of East Asian Nations (SEAN).
This economic turmoil resulted in the Global Recessions of 1967, 1984, and 1998.
Global Recession of 1967 and the Administrative States of Aon
It was during this recession that an Ohioan Congressman, named Jefferson Aon, rose to power. Realizing the potential of America's millions of unemployed, Aon led his army, the Legionhood of Brothers and Sisters (LOBSters) into rebellion against the current presidency. As discontentment grew, so did his influence.
Aon was elected president by his forces in 1968, and by the rest of the American public in 1970. He reorganized the United States into a Socialist Democracy, known as the Administrative States of Aon. Realizing that his rebelling army had dissipated into parts of Canada and Mexico, Aon used his power to consolidate all major North American Nations into the Decisive Alliance of North American Democracies (DANAD)
Global Recession of 1998, the War of Western Continents, and the Aon Administrative Empire
Following this recession, the United Republics of Southern America (URSA) invaded DANAD, leading to what was known, in the States, as the Holding Line War. Following URSA's failure to control the northern public, it fell back beyond its own borders.
Realizing his continent's anger over the invasion, the current president at the time, Davids Aon, prompted a counter assault on South America. It was successful, and the combined continents were reconsolidated into the Aon Administrative Empire. With URSA's combined oil reserves, and DANAD's own powerful industrial centers, the Empire quickly expanded into Europe, Asia, and Africa. Within the space of a decade, it had grown to encompass the entire world.