Nationalist takeover of Japanese-occupied territory Takeover of Japanese and collaborator goods and properties is flawed and corrupt Widespread corruption among returning Nationalist officials: undermines their legitimacy Nationalist’s highly unpopular reliance on and lenience to former collaborators Nationalist government’s hostile attitudes and policies toward Chinese in formerly occupied areas, particularly the Northeast

Economic Collapse Massive inflation, completely out of control Deficit spending: government spending far more than it receives, so prints more money Gold Yuan Reform: Failure to check the inflation, hostile policies toward businessmen erodes support for the government

Civil War Politics and Student Unrest Failure of the Democratic League, a political “Third Force” Student Protests: December 1946: Anti-American protests following the rape of a Chinese student by U.S. Marines Spring 1947: “Resist Hunger, Resist civil war” movement, a nationwide protest against the civil war

Chinese Communists and “New Democracy” New Democracy: Mao’s concept from the early 1940s Forged in the United Front spirit of broad appeals Promises that “communism” still far off in the future Promises a role for urbanites, intellectuals, capitalists in building the new order

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