The communist party started off as early as 1931 when they tried to form a separate state within the Republic of China called the Chinese Soviet Republic. This Republic, led by Mao Zemin, had its own currency. They did not succeed for too long, and were met with resistance from the early start. Under Mao Zemin’s supervision, plenty of resistance was offered to the nationalists.
However, this attempt at forming a separatist State was flawed because of the nationalist government’s constant planning against these emerging communists. When Mao Zemin was later on removed from the communist Red Army leadership and replaced with other more militarily incompetent commanders, Chiang Kai-shek, the Nationalist leader, did well to blow the Communists out of the water and annihilate their group by a series of careful military endeavors. However, Zhou Enlai, part of the Red Army leadership who later became the first Premier of the People’s Republic of China, was wise to plant his own informants within Chiang’s clan and thus keep him informed of later operations. His informants helped him and his commanders evade the assault that Chiang planned in 1934 and eventually lead the nation into communism by the late 40s.
The Soviet State was a failed attempt at introducing the country to communism. The nationalists felt constantly threatened by their presence and eventually besieged them for one final time in 1934, so as to topple this State within a State. The Jiangxi State, which had the most concentration of communists and served as their central government, was brought to its knees when the Chinese Red Army suffered many losses at the hands of the nationalists. This was mainly because of the mismanagement that the change in leadership provided. After the Jiangxi Soviet collapsed in 1934, the Soviet continued to exist formally and was only completely annulled in 1937.
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