By 1947, the Soviets had fully absorbed the three Baltic nations, and effectively controlled Poland, East Germany, Czechoslovakia, Romania, and Bulgaria. Austria and Finland were neutral and demilitarized. The Kremlin did not control Yugoslavia, which had a separate communist regime under Marshall Tito; They had a permanent bitter break in 1948. The Cold War lines stabilized in Europe along the Iron Curtain, and there was no fighting. The United States helped form a strong military alliance in NATO in 1949 including most of the nations of Western Europe, and Canada. In Asia, however, there was much more movement. The United States failed to negotiate a settlement between its ally, nationalist China under Chiang Kai-shek, and the Communists under Mao Zedong. The Communists took over China in 1949 and the nationalist government moved to the offshore island of Formosa (Taiwan), which came under American protection. Local communist movements attempted to take over all of Korea (1950) and Vietnam (1954). Communist hegemony covered one third of the world's land while the United States emerged as the world's more influential superpower, and formed a worldwide network of military alliances.