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While the Entente and China argued over borders the Worker's Federation began massing troops along the ceasefire line and continued it's industrialisation schemes to allow increased mechanisation for troops already present. Combined with increased Entente deployment China realised that even if the Entente was out of nukes a restart on the war would hurt China a great deal. As such they decided to go with a generous offer: they would pull out of Entente nations (excluding the rather ambiguous Tibet) and accept the loss of Outer Mongolia and Xianjing in exchange for no other punishments. After extensive debate the Entente talked them into selling Macau and Hong Kong back to the Entente. Republican foces in Hainan and the Pratas (which was about 400 troops evacuated there and then never shipped to Hainan or elsewhere) refused to recognise the treaty and sporadic fighting continued, though the Hainan Government retained control over much of China's Navy and eventually a truce came into place after a decisive Hainan victory.
Italy has gotten past the 5 year occupation of a number of major territories and is now courting the Entente (if it would just let them rebuild their army Italy could be a great bulwark against Communism). The 'Red Panic' has swept most of Europe (Poland, Norway, and Czechia have taken a relative 'meh, whatever' approach, but everyone else...), with panicked witch hunts worse than McCarthyism ever saw. Why? Because everyone in bankrupt, Canada and Australia can only ship so much food so rationing is still going strong 7 years after the war (well, in 'Free' Europe, apart from a little stumble during 1946 where crops failed the Worker's Federation has benefited from sitting on the breadbaskets of Europe and the West refusing their surpluses), lots of soldiers saw their pensions cut, women are radicalising over inequality as a shortage of men has let them stay in the workforce, and generally things are miserable. So witch hunts and scapegoats are seen as the answer. Spain has done okay though, after looting Portugal they took relatively low losses in the war.
Indian independence went . . . strangely. Fearing division could invite Chinese intervention certain segments of the political class pushed for unity in a federation, and then after groups less fond of unity spoke out this turned into a confederation, and then . . . what could only be called an experiment. Whether India is one country or an alliance of countries can honestly lead to fist fights amongst political scientists (who've had a bit to drink). Members have a semi-unified foreign policy (anyone declaring war on one member declares war on all members, but each member can go set up trade deals with who ever, and as long as no other members get to angry with them can theoretically march off to war with another country), certain goods must be traded freely, famine relief is essential, and so forth. It's kind of like trying to figure out if Hinduism really counts as one religion. And some invited states decided to back away slowly from the whole headache.
Afghanistan just voluntarily joined in 1949 after Turkmenistan went Communist is a rather questionable election.
The former French Empire has had some interesting developments. Against odds the 'Imperial Federation' idea gained traction. A few colonies were given plebiscites to see what they wanted. Indochina was seen as indefensible and so given the option of independence, which Cambodia and Vietnam gladly took and were given a hasty border, but Laos . . . oh no they had to vote to stay a French associate. Despite being landlocked. And rather far from the next French holdings. France has basically foisted more and more autonomy on them hoping they'll get the message, but Laos keeps flying the tricolour (because they believe as soon as they stop one or all of their neighbours are going to invade). East Soudan (OTL's South Sudan) just booked it and left after voting to be an associated state then having a series of rapid coups that left France honestly unsure who to recognise. It's not the most stable state around. All other regions offered membership to the new federation or merely 'associated state' status went for the latter. Those left are frequently bitter they didn't get the option, but are interested in these new universities and hospitals France is building. To prove they're good for their word a few smaller colonies were give a bee-line towards full membership (Djibouti, a few island territories, and Indian cities), the rapid modernisations being paid for by selling territories in the New World to Canada (Paris needed quick money, and hoped that more French citizens would help Canada lean more strongly to France than England in future).
The British unceremoniously tossed aside most of their more expensive colonies after losing India. Then to the remainder they pointed at was France was doing as effectively said 'We'll totes do that soon, just let us work out a couple details'. One of the key details involved pleading with Victoria (Australia's capital), Dublin, Perth, and Ottawa to join up (South Africa was being strangely cryptic about where they were putting their capital, had a bunch of grumpy 'Dutchmen' republicans, and would barely help make the new federation any whiter). Dublin said 'maybe, what's in it for us', Perth said 'We get to be really English? Awesome!' (too the grumblings of the rather Indian northern bits), Victoria muttered something about British debt, and Ottawa effectively said 'Pardon Angleterre? Qu'est-ce que vous avez dit?' (they're very strong Monarchists and happy to be partners to London, but the Francophone 3rd view language as a pretty important issue). So it will probably come down to how quickly London can balance it's budget to decide if Victorian Australia joins.
The Indonesia War of Independence was nasty (and confusing). Egged on by self exiled Muslims from India and a failure of secular independence groups the main rebel force was proudly Muslim. Not in a radical way or anything, but viewing the Muslim faith as a key part of their Indonesian identity (so many ethnic groups needed something to unify them). The remnant Dutch basically fought an organised retreat to get Dutch settlers and a scattering of loyalists to the Caribbean (the Communist government in Amsterdam had managed to gain nearly full recognition by this point). Bali however proved messy. The Bali Hindus demanded constitutional protection for their faith, and made a big enough stink to get other religious minorities protesting. At some point an overconfident Colonel in the new army decided lead was a good negotiating tool and shot up a crowd of protestors. The Hindu media in India exploded in rage, demanding Delhi do something. Indian Muslims were split on whether to support their fellow Indians or their fellow Muslims, but when parliament voted that split mean about 60% of Muslim MPs agreed to intervene in the name of religious tolerance (and reelection in a number of mixed religion electoral districts). India's naval expedition to Indonesia was coordinated with an Australian intervention to protect Christians (though India's naval capabilities were surprisingly robust, London having sold most of the fleet prepared for transfering Indian troops abroad in the War and a few bonus war ships for quick cash). Meanwhile conservative groups in Borneo would side with either British (read Malayo-Bruneian) or American backers.
The Latin League was dismembered. Argentina embarassed. The rest crushed. Mexico and Venezula were stripped of much of their lands, Colombia left humiliated and forced to accept their position as the new Coalition's meeting place. Ecuador lost much of it's territory before being tossed aside, not worth continued subjegation. The Americans were forced by realpolitik to redefine their views on race a bit, with White Hispanics being seen as acceptably White enough to serve in the middle of the new American pyramid. WASPs and the like were held to the top; various white Catholics, Arabs, Turks, and Greeks were allowed to live as a second class, deprived of the good jobs by practice but (mostly) equal in the eyes of the law; while Blacks were placed at the bottom. Laws far harsher than OTL's segregation crept into existance as the Naco party used the patriotism of the war to gain control of the remaining government, and erode the checks and balances that kept democracy functional. The Blacks were at the bottom for Citizens, but certain groups were deemed 'non-citizens'. This world never saw the Snyder Act put in place, so Natives stood without citizenship, and further limitations to keep them on reserves were set in place. 'Communist' ethnicities were likewise considered untrustworthy (even if Poland still hadn't gone Communist they were 'clearly' Reds) and many were deported to Canada or Europe as a 'humane' response to 'evidence of treason'. The official deportations covered 'only' a quarter million people, but the rest got the message and nearly 3 million would leave the United States during the 1940s, most arriving at the Canadian border with little more than the clothes on their backs.
China remains authoritarian and absolutist. The government has pushed for near total isolationism. The Americans are starting to send the chocolates and flowers though (one isolationist region to another).
Now for some of the good news.
The Philippines and booming, and helping all their trading partners. Breaking 20 million people and not looking back their booming population has meant a market for Japanese goods. Combining that with Korea being rebuilt along more modern lines causing demand for engineers and labourers and employment is nice and low. Thailand has also been hard at work rebuilding. Unemployment is very low across the Asian entente, so the governments might be semi-bankrup, and food prices high, but wages are growing quickly too. Japan still has a weird Anarchist vs. Populist thing going on in politics and is rubbing off on Korean and the Philippines, but it's not bad, just confusing to European observers (who have a Conservatives vs. Centrist thing going on after most of the leftists have been arrested for 'communism').
Victorian Australia is booming. European immigration is going strong, strong enough they've opened up a bit more to Asian immigration. They're retaining a strong navy to keep an eye on the Americans, the world wants their wheat and mineral goods, and life is generally pleasant. They're definitely third fiddle in the British Sphere to Canada and the UK, but if things keep going well surely the Western bit will realise how foolish not joining is and then they can head towards international prominence. (This are going nicely in Western Australia though, so don't expect that any time soon.)
Canada is booming too. Europeans are seeking a better life in significant numbers, and the other settler nations are kinda far away, so Canada gets a lot of them. The afforementioned American Slavs and Jews have been showing up in large numbers, and grown quite integrated. A fair number showed up while the war was still going and so Ottawa gave a fast tracking set up towards citizenship to any family that had a member join the military, and any secondary family members joining the military could sponsor a second family. A lot of these recruits weren't really up to military standards and so found themselves in logistics and planning jobs, but the roles were important and the thought counted. Montreal has seen some issues with all the Jewish immigrants from New York, but (mostly) not due to anti-semitism so much as ongoing linguistic tensions in Canada's largest city and the Francophone World's second largest city. With increased immigration Canada stands on the edge of passing the United Kingdom for population (Canada with the Caribbean sits at 47 million to the UK's 48 million) and has already passed European France (with a mere 41 million in the metropole, though Algeria pushed them up to about 49 million). Of course with 84 million people Japan stands as the most populace Entente state and will hold that spot for some time. Politics is mostly split between the Liberal Party (which gobbled up the Conservatives during a bit of personal political rivalry that divided it) which is effectively a Red Tory populist party strongly rooted in Eastern (Anglo) Canada and the Cooperative Alliance Party a mixture of Socialists and Western Interest groups. Elections are usually decided by who can win over Quebec and the working class or farmers of OTL's Ontario (depending on if the Socialist or Western clique is dominant). The Caribbean tends to vote erratically with huge swings based more off individual candidates rather than parties with a strong amount of independants. Washington claims this shows Blacks don't really grasp politics, while Ottawa points to Barbados, a far more established province, having more regular voting patterns, as a sign that it's just the lack of brand establishment and party roots in the newer provinces that only gained increased representation when property requirements were removed.
The Worker's Federation is doing well enough though. Finland has made some promising experiments with the democratization of communism (basically pick which strain of communism you like most). Industrialisation has slowed from the breakneck pace of the war, and is now focused on personal goods. Why? More jobs per unit of raw material for all those little fiddly bits, making it a cheaper form of mass employment. Moscow's government remained generally fearful of a revolution of the kind that overthrew the Tsar and hoped for peace at home and abroad through attempts at friendly relations with foreign powers. Unfortunately the basis of the Comintern being built around 'the overthrow of nobility and bourgeosie' and continued financial support for socialist and communist parties abroad allowed them to only get as far as cordial relations (except with Canada and Japan, both of whom have been quite friendly, especially when Anarchists or the CAP are in charge). Militarily they're quite a bit weaker than OTL's USSR, but (apart from Hungary and Sweden) their allies are genuine allies and they provide higher living standards.
Now nukes, that was the question of everyone's minds. Canada continued to build them while fretting over the morality, knowing that they were the only hope if the United States tried to invade. Then the Worker's Federation tested a bomb in 1946, sending the whole world for a loop. Europe was in a panic, France and the UK demanded Canada build facilities in Europe to build warheads (because the European powers couldn't afford the cost of all that). Ottawa (with Tokyo's backing) declared that needless confrontationalism and that Canada could deploy warheads to Europe if Moscow went on the offensive before the Russians could reach the Rhine.
Early 1951 is going to see a new crisis. The American nuclear project will bare fruit in March of that year and suddenly two nuclear powers will border one another. (Okay, yes, Canada and the USSR share a border in the far east of Asia here, but that doesn't really count. Chukotka has like 25 thousand people. So it's surprisingly dense compared to the Yukon or NWT, but still pretty empty.)
