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Escalation And The CCP’s Financial Framework

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Chapter Summary

Luo Ronghuan defined the outstanding feature of the war in Shandong as the three-way struggle between the CCP, the Nationalists and the Japanese. The CCP was the weakest point in this triangle until the summer of 1942. The Japanese EFNC was focused on the GMD, and ignored the CCP's presence until the CCP's large-scale raids against the Japanese-controlled railway system in the provinces of Shanxi and Hebei in the late summer of 1940. The CCP's expansion naturally escalated their frictions with the Nationalists to a mini-civil war in the province and elsewhere in northern China. When the Comintern confirmed in late May 1939 that the escalation was a part of a global bourgeois appeasement policy and a prelude to a GMD-Japanese compromise at the expense of the CCP, Mao decided to take a confrontational policy. The evolution of the CCP's financial policy well reflected their conflicts and compromises.

Keywords: CCP's financial policy; global bourgeois appeasement policy; Hebei; Shandong; Shanxi



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