http://zh.wikipedia.org/wiki/%E8%88%8A%E9%87%91%E5%B1%B1%E5%92%8C%E7%B4%84

Under the section: 其他相關的和平條約

It's a bit different from what you said. The Chinese government did not sign a treaty that prevent China from getting compensation from Japan. The Chinese government, however, GAVE UP the right. But that was a contraversal moment as well because the KMT was losing the mainland China to Communist Party. Who has the right to gave up the right...

Looking back from history, many Chinese still could not stood straight in front of foreigners.