The Rise of Communism

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Amidst the endless glamour, the Communist Party was gaining momentum. They actually held their first meeting in Shanghai in 1921, with Mao Zedong in attendance. As they were formulating their plans, the Japanese had plans of their own. The Japanese Navy bombed Shanghai on January 23, 1932, sparking years of raids and invasions, which ended in Japan completely occupying Shanghai by 1937. Shanghai’s glory days had come to a close.

During the war, most of the foreigners fled the concessions, ceding them to the Japanese. With the international players out of the picture, Shanghai lost its role an international trading port. Japan surrendered to the Allies in 1945, but Shanghai’s influential status had already been decimated and the city was weakened politically. The French concession finally departed in 1946, forever ending the city’s colonial period.

Tensions in China remained high after the war as the Nationalists and Communists fought a three-year civil war for control of the nation. In 1949 the Communists declared victory. Desperate to buoy the economy, Chinese business people in Shanghai made a deal with the Communists, allowing them to peacefully take over the city. Communist leaders ended the opium trade, along with the rampant prostitution and gambling. The private companies were nationalized in 1952.



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