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 ftp://sunsite.unc.edu/pub/multimedia/chinese-music/Historical_Voices/