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The now-more-conservative KMT resumed its Northern Expedition in the spring of 1928 with a reorganized National Revolutionary Army. In the drive on Beijing it was joined by the National People’s Army under Feng Yuxiang, part of the Guangxi army, and the Shanxi army of Yan Xishan. In early June they captured Beijing, from which Zhang Zuolin and the Fengtian army withdrew for Manchuria. As his train neared Mukden (present-day Shenyang), Zhang died in an explosion arranged by a few Japanese officers without the knowledge of the Japanese government. Japan did not permit the Nationalist armies to pursue the Fengtian army into Manchuria, hoping to keep that area out of KMT control. By the end of the Northern Expedition, the major warlords had been defeated by the Nationalists, whose armies now possessed the cities and railways of eastern China. On October 10 the Nationalists formally established a reorganized National Government of the Republic of China, with its capital at Nanjing; Beijing was renamed Beiping (Pei-p’ing), “Northern Peace.”

The Nationalist government from 1928 to 1937

The most-serious immediate problem facing the new government was the continuing military separatism. The government had no authority over the vast area of western China, and even regions in eastern China were under the rule of independent regimes that had lately been part of the Nationalist coalition. After an unsuccessful attempt at negotiations, Chiang launched a series of civil wars against his former allies. By 1930 one militarist regime after another had been reduced to provincial proportions, and Nanjing’s influence was spreading. Explained in material terms, Chiang owed his success to the great financial resources of his base in Jiangsu and Zhejiang and to foreign arms. Quick recognition by the foreign powers brought the Nationalist government the revenues collected by the efficient Maritime Customs Service; when the powers granted China the right to fix its own tariff schedules, that revenue increased.

Although the aim of constitutional, representative government was asserted, the Nationalist government at Nanjing was in practice personally dominated by Chiang Kai-shek. The army and the civil bureaucracy were marked by factional divisions, which Chiang carefully balanced against one another so that ultimate decision making was kept in his own hands. The KMT was supposed to infuse all government structures and to provide leadership, but the army came to be the most powerful component of government. Chiang’s regime was marked by a military orientation, which external circumstances reinforced.

Nevertheless, the Nationalists did much to create a modern government and a coherent monetary and banking system and to improve taxation. They expanded the public educational system, developed a network of transportation and communication facilities, and encouraged industry and commerce. Again it was urban China that mainly benefited; little was done to modernize agriculture or to eradicate disease, illiteracy, and underemployment in the villages, hamlets, and small towns scattered over a continental-size territory. With conscription and heavy taxation to support civil war and a collapsing export market for commercial crops, rural economic conditions may have grown worse during the Nationalist decade.

The Nationalist government during its first few years in power had some success in reasserting China’s sovereignty. Several concession areas were returned to Chinese control, and the foreign powers assented to China’s resumption of tariff autonomy. Yet these were merely token gains; the Unequal Treaties were scarcely breached. The country was in a nationalistic mood, determined to roll back foreign economic and political penetration. Manchuria was a huge and rich area of China in which Japan had extensive economic privileges, possessing part of the Liaodong Peninsula as a leasehold and controlling much of southern Manchuria’s economy through the South Manchurian Railway. The Chinese began to develop Huludao, in Liaodong, as a port to rival Dairen (Dalian) and to plan railways to compete with Japanese lines. Zhang Xueliang (Chang Hsüeh-liang), Zhang Zuolin’s son and successor as ruler of Manchuria, was drawing closer to Nanjing and sympathized with the Nationalists’ desire to rid China of foreign privilege.

For Japan, Manchuria was regarded as vital. Many Japanese had acquired a sense of mission that Japan should lead Asia against the West. The Great Depression had hurt Japanese business, and there was deep social unrest. Such factors influenced many army officers—especially officers of the Kwantung Army, which protected Japan’s leasehold in the Liaodong Peninsula and the South Manchurian Railway—to regard Manchuria as the area where Japan’s power must be consolidated.

Japanese aggression

In September 1931 a group of officers in the Kwantung Army set in motion a plot (beginning with the Mukden Incident) to compel the Japanese government to extend its power in Manchuria. The Japanese government was drawn step by step into the conquest of Manchuria and the creation of a regime known as Manchukuo. China was unable to prevent Japan from seizing this vital area. In 1934, after long negotiations, Japan acquired the Soviet interest in the Chinese Eastern Railway, thus eliminating the last legal trace of the Soviet sphere of influence there. During 1932–35 Japan seized more territory bordering on Manchuria. In 1935 it attempted to detach Hebei and the Chahar region of Inner Mongolia from Nanjing’s control and threatened Shanxi, Shandong, and the Suiyuan region of Inner Mongolia. The National Government’s policy was to trade space for time in which to build military power and unify the country. Its slogan “Unity before resistance” was directed principally against the Chinese communists.

War between Nationalists and communists

In the meantime, the communists had created 15 rural bases in central China, and they established a soviet government, the Jiangxi Soviet, on Nov. 7, 1931. Within the soviet regions, the communist leadership expropriated and redistributed land and in other ways enlisted the support of the poorer classes. The Japanese occupation of Manchuria and an ancillary localized war around Shanghai in 1932 distracted the Nationalists and gave the communists a brief opportunity to expand and consolidate. But the Nationalists in late 1934 forced the communist armies to abandon their bases and retreat. Most of the later communist leaders—including Mao Zedong, Zhu De, Zhou Enlai, Liu Shaoqi, and Lin Biao—marched and fought their way across western China in what became known as the Long March. By mid-1936 the remnants of several Red armies had gathered in an impoverished area in northern Shaanxi, with headquarters located in the town of Yan’an, which lent its name to the subsequent period (1936–45) of CCP development.

During the Long March, Mao Zedong rose to preeminence in the CCP leadership. In the early 1930s he had engaged in bitter power struggles with other party leaders and actually had found himself in a fairly weak position at the start of the Long March campaigns, but in January 1935 a rump session of the CCP Political Bureau (Politburo) confirmed Mao in the newly created post of chairman. It was also during the Long March that the CCP began to develop a new political strategy—a united front against Japan. It was first conceived as an alliance of patriotic forces against Japan and the Nationalist government, but, as Japan’s pressure on China and the pressure of the Nationalist armies against the weakened Red armies increased, the communist leaders began to call for a united front of all Chinese against Japan alone. Virtually all classes and various local regimes supported this, and the communists moderated their revolutionary program and terminated class warfare in their zone of control.

Chiang was determined, however, to press on with his extermination campaign. He ordered the Manchurian army under Zhang Xueliang, now based in Xi’an (Sian), and the Northwestern army under Yang Hucheng (Yang Hu-ch’eng) to attack the communist forces in northern Shaanxi. Many officers in those armies sympathized with the communist slogan “Chinese don’t fight Chinese”; they preferred to fight Japan, a sentiment particularly strong in the homeless Manchurian army. Zhang Xueliang was conducting secret negotiations with the communists and had suspended the civil war. In December 1936 Chiang Kai-shek flew to Xi’an to order Zhang and Yang to renew the anticommunist campaign. Under pressure from subordinates, Zhang detained Chiang on the morning of December 12 (this became known as the Sian Incident).