Qi, Chunfeng, “Kangzhan shiqi dahou fang yu lunxian qujian de fabi liudong” [The flow of Guomindang currency between Chinese-controlled and enemy-occupied areas during the resistance war against Japan] (2003)

Title : “Kangzhan shiqi dahou fang yu lunxian qujian de fabi liudong” [The flow of Guomindang currency between Chinese-controlled and enemy-occupied areas during the resistance war against Japan]

Author(s) : Qi, Chunfeng

Year : 2003

Type : Journal article

Subject : History

Keywords : economy;war

Journal : Jindaishi yanjiu (Modern Chinese History Studies)

Number : 5

Start page : 137

End page : 169

Language:Name : Chinese

Support : Print

Abstract : During the 2d Sino-Japanese War, Guomindang (Nationalist Party) currency (fabi) flowed informally on a large scale between the Chinese-controlled rear area in West China and enemy-occupied areas. This phenomenon was mainly instigated by Japan and was related to the weakness of the rear-area economy. Before the Pacific War, Japan acquired fabi by smuggling and dumping goods in the Chinese rear area and then illegally purchasing fabi foreign exchange funds on the Shanghai fabi foreign exchange market. After the breakout of the war, the Japanese first took the fabi they had acquired in the occupied territories and drove it into the Guomindang-controlled rear area by offering seductively high prices for material resources. After this quantity of fabi was used up, they tried to acquire fabi by other means and use it to buy away the rear area's material resources. Japan's aim in instigating the flow of fabi was to promote the financial collapse of the rear area. However, although Japan illegally purchased a large sum of fabi foreign exchange before the war and purchased a great deal of materials from the rear area, the goal of promoting the financial collapse of the rear area was not achieved. The strategy failed because the Guomindang government got financial assistance from other Allied countries, was supported by the Chinese citizenry, and used its material war to complement its currency war against Japan.