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Aa it says, the Nationalists party is unable to hold together & by late 1938 the remnants are either in a hillside hideout, or setting up in exile. Japan continues its policy of turning cooperative warlords into local puppets and sponsoring a new nationalist party completely under its control. Maos Communists are the only remaining Chinese army not under Japans control.

My first question is if this situation is of any ecnomic benefit to Japan in the next 3-4 years.

Second; What are the global effects politially & economically?
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