He shouldn't have allowed him to attack them. Attacking China would only further escalate the problem and there would even be a chance for World War 3 to begin. China would probably be attacked with nukes in such a war and would get international support because of this from people such as the Soviet Union or from others who were also big at the time.
Reagan favored this because he "<span>a. thought the federal government was too big" since he thought that the federal government was inhibiting people's ability to be prosperous. </span>
