• Inflation in China Skyrocketed in the 1940s

  • Post-1937, Japan occupied China’s wealthy areas, which triggered inflation.
  • After 1945, inflation went bonkers, turning into hyperinflation. By 1949, the monetary system = 💥 (collapsed!)

🌎 Real-World Example: Imagine if a video game currency suddenly became so worthless that you'd need a million coins to buy a single potion. That's hyperinflation!

• Reasons for Inflation

  • War costs, especially an army of 5 million (80% of the government's budget 🤯)
  • The government imposed heavy taxes and took over private banks.
  • It also borrowed like a college student with a credit card, both from abroad and by printing more money.

🌎 Real-World Example: Think of your parents having a limited monthly budget, and then you have to add a "pet dragon" to the list. Yep, now they have to do crazy things to afford it!

• Impact of Inflation

  • It crippled the government financially.
  • Left the people demoralized.
  • Basically sealed the doom for the GMD government, even if they had won the Civil War.

🌎 Real-World Example: Imagine your fave sports team being so bad financially they can't even buy good gear. Do you think they can win? Nope!

• Jiang’s Aims
  • Jiang wanted to regain control over foreign concessions in China.

🌎 Real-World Example: It's like wanting to control all the Wi-Fi zones in your school. Gotta have that power, right?

• Changes Made
  • Restructured the legal system in the concessions.
  • Foreign companies had to pay higher import and export duties.

🌎 Real-World Example: Imagine if the school cafeteria was owned by a foreign company, and the school says they now have to pay more to keep operating there.

• The Catch
• He couldn’t just kick foreigners out due to their military presence.
• Many Chinese people worked in these concessions, so totally cutting them off wasn’t an option.

🌎 Real-World Example: It's like trying to restrict your annoying cousin from coming over, but then you remember he's the one fixing your computer for free.

• Jiang's Dilemma
  • He disliked foreign presence but also needed foreign support, especially after the Japanese occupied Manchuria in 1931.

🌎 Real-World Example: Think of it like needing to be in a group project with someone you don't like. You may not want to work with them, but you kinda have to.