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During World War II, popular support for the Communists increased. U.S. officials in China reported a dictatorial suppression of dissent in Nationalist-controlled areas. These undemocratic policies combined with wartime corruption made the Republic of China Government vulnerable to the Communist threat. The CCP, for its part, experienced success in its early efforts at land reform and was lauded by peasants for its unflagging efforts to fight against the Japanese invaders.
====After defeating the Japanese - Civil War breaks out in 19461945====
Japanese surrender set the stage for the resurgence of civil war in China. Though only nominally democratic, the Nationalist Government of Chiang Kai-shek continued to receive U.S. support both as its former war ally and as the sole option for preventing Communist control of China. U.S. forces flew tens of thousands of Nationalist Chinese troops into Japanese-controlled territory and allowed them to accept the Japanese surrender. The Soviet Union, meanwhile, occupied Manchuria and only pulled out when Chinese Communist forces were in place to claim that territory.
In 1945, the leaders of the Nationalist and Communist parties, Chiang Kai-shek and Mao Zedong, met for a series of talks on the formation of a post-war government. Both agreed on the importance of democracy, a unified military, and equality for all Chinese political parties. The truce was tenuous, however, and, in spite of repeated efforts by U.S. General George Marshall to broker an agreement, by 1946 the two sides were fighting an all-out civil war. Years of mistrust between the two sides thwarted efforts to form a coalition government.
As the civil war gained strength from 1947 to 1949, eventual Communist victory seemed more and more likely. Although the Communists did not hold any major cities after World War II, they had strong grassroots support, superior military organization and morale, and large stocks of weapons seized from Japanese supplies in Manchuria. Years of corruption and mismanagement had eroded popular support for the Nationalist Government. Early in 1947, the ROC Government was already looking to the island province of Taiwan, off the coast of Fujian Province, as a potential point of retreat.
====Nationalist government fled to Taiwan and American Policy towards China Flailed====
