The Peking Government announced war, are renounced all treaties, with German in August 1917. In the Paris Peace Conference, 1919, the Big Five decided to transfer ex-German settlement and privileges in Shandong to Japan, then, disappointed China refused to sign the Treaty of Versailles. China and German stared to negotiate a bilateral peace treaty in 1920 and reached an Agreement in May 31, 1921. The Sino-German Agreement is a milestone in the development of the Treaty Revision diplomacy of Peking Government. Peking diplomats successfully secured a total equal new treaty with an ex-treaty Power, nor only raised China's international position but also shattered the so-called unequal treaty system.