Chapter 4 - Nationalists & Communists 1924-45 (China 1839-1997)
China's Financial Collapse: The 1949 Hyperinflation Crisis
Table of content
What You Need to Know: 🚀
-
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!
🇨🇳 Topic: Policy towards Foreign Concessions
- 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.
Unlock the Full Content! 
Dive deeper and gain exclusive access to premium files of History HL. Subscribe now and get closer to that 45 🌟
Chapter 4 - Nationalists & Communists 1924-45 (China 1839-1997)
China's Financial Collapse: The 1949 Hyperinflation Crisis
Table of content
What You Need to Know: 🚀
-
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!
🇨🇳 Topic: Policy towards Foreign Concessions
- 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.
Unlock the Full Content!
Dive deeper and gain exclusive access to premium files of History HL. Subscribe now and get closer to that 45 🌟