Japan itself and that this would have to be undertaken by the Western powers, not by China.  The communists, on their side, set up a guerrilla organization behind the Japanese lines, so that, although the Japanese controlled the cities and the lines of communication, they had little control over the countryside.  The communists also attempted to infiltrate the area held by the Nationalists, who in turn were interested in preventing the communists from becoming too strong; so, Nationalist troops guarded also the borders of communist territory.

American politicians and military advisers were divided in their opinions.  Although they recognized the internal weakness of the Nationalist government, the fighting between cliques within the government, and the ever-increasing corruption, some advocated more help to the Nationalists and a firm attitude against the communists.  Others, influenced by impressions gained during visits to Yen-an, and believing in the possibility of honest co-operation between a communist regime and any other, as Roosevelt did, attempted to effect a coalition of the Nationalists with the communists.

At the end of the war, when the Nationalist government took over the administration, it lacked popular support in the areas liberated from the Japanese.  Farmers who had been given land by the communists, or who had been promised it, were afraid that their former landlords, whether they had remained to collaborate with the Japanese or had fled to West China, would regain control of the land.  Workers hoped for new social legislation and rights.  Businessmen and industrialists were faced with destroyed factories, worn-out or antiquated equipment, and an unchecked inflation which induced them to shift their accounts into foreign banks or to favour short-term gains rather than long-term investments.  As in all countries which have suffered from a long war and an occupation, the youth believed that the old regime had been to blame, and saw promise and hope on the political left.  And, finally, the Nationalist soldiers, most of whom had been separated for years from their homes and families, were not willing to fight other Chinese in the civil war now well under way; they wanted to go home and start a new life.  The communists, however, were now well organized militarily and well equipped with arms surrendered by the Japanese to the Soviet armies as well as with arms and ammunition sold to them by KMT soldiers; moreover, they were constantly strengthened by deserters from the KMT.  The civil war witnessed a steady retreat by the KMT armies, which resisted only sporadically.  By the end of 1948, most of mainland China was in the hands of the communists, who established their new capital in Peking.

2 Nationalist China in Taiwan

The Nationalist government retreated to Taiwan with those soldiers who remained loyal.  This island was returned to China after the defeat of Japan, though final disposition of its status had not yet been determined.