A practice by China to use panda bears as a tool for striking international diplomatic and trade deals. The term panda diplomacy first came into use in 1941 when Song Mei Ling (Madame Chiang Kai-shek) gave a pair of pandas to the Americans in appreciation for their relief aid to China. It was the first time that China presented any living panda in the name of its government. In total, Chiang's government gave 14 pandas to various western countries. During the 1950s, the newly formed People's Republic of China presented pandas to other countries as gifts to win over their diplomatic recognitions and support. From 1958 to 1982, China gave 23 pandas to nine different countries.

In 1972 the People's Republic of China presented Richard Nixon with a gift of friendship to mark his historic visit to China: the giant pandas Ling-Ling and Hsing-Hsing. Based on its prestigious reputation as a world-class research zoo and a member of the Smithsonian Institution, the National Zoo was selected as the new home for these special gifts.

By 1984, however, pandas were no longer used purely as agents of diplomacy. Instead, China began to offer pandas to other nations only on ten-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 be the property of the People's Republic of China.