Kuomintang's retreat to Taiwan

The Chinese Civil War between Chiang Kai-shek’s KMT forces and Mao Zedong's CCP entered its final stage in 1945, following the surrender of Japan. Both sides sought to control and unify China. While Chiang heavily relied on assistance from the United States, Mao relied on support from the Soviet Union as well as the rural population of China.[5]

The bloody conflict between the KMT and the CCP began when both parties were attempting to subdue Chinese warlords in northern China (1926–28) and continued though the Second Sino-Japanese War (1932–45), during which time vast portions of China fell under Japanese occupation. The need to eliminate the warlords was seen as necessary by both Mao Zedong and Chiang Kai-shek, but for different reasons. For Mao, their elimination would end the feudal system in China, encouraging and preparing the country for socialism and communism. For Chiang, the warlords were a great threat to the central government. This basic dissimilarity in motivation continued throughout the years of fighting against the Japanese invasion of China, in spite of a common enemy.

The ideological unity of the CCP, and the experience acquired in fighting the Japanese, prepared it for the next battles against the Kuomintang. Though Chiang's forces were well equipped by the US, they lacked effective leadership and political unity.

In January 1949, Chiang Kai-shek stepped down as leader of the KMT and was replaced by his vice-president, Li Zongren. Li and Mao entered into negotiations for peace, but Nationalist hardliners rejected Mao's demands. When Li sought an additional delay in mid-April 1949, the Chinese Red Army crossed the Yangtze (Chang) River. Chiang fled to the island of Formosa (Taiwan), where approximately 300,000 soldiers had already been airlifted.

Over the course of 4 months beginning in August 1949, the ROC leaders relocated the Republic of China Air Force to Taiwan, taking over 80 flights and 3 ships.[1] Chen Chin-Chang writes in his book on the subject that an average of 50 or 60 planes flew daily between Taiwan and China transporting fuel and ammunition between August 1949 and December 1949.

Chiang also sent the 26 naval vessels of the Nationalist army to Taiwan. The final Communist assault against Nationalist forces began on April 20, 1949, and continued until the end of summer. By August, the People's Liberation Army dominated almost all of mainland China; the Nationalists held only Taiwan and the Pescadores Islands, some parts of Kwangtung, Fukien, Chekiang and a few regions in China's far west.[5]

Institute of History and Philology director Fu Ssu-nien spearheaded a rush to persuade scholars to flee to Taiwan, as well as bringing books and documents.[1] Institutions and colleges like Academia Sinica, National Palace Museum, National Tsing Hua University, National Chiao Tung University, Soochow University, Fu Jen Catholic University and St. Ignatius High School were re-established in Taiwan.

In total, according to current estimates, a migration of between 900,000 and 1,100,000 people must have taken place to Taiwan from the Chinese mainland between 1945 and 1955. The prior population of the island, at the end of Japanese rule, is estimated as 6,500,000 (see also Population of Taiwan). Of these, the Japanese subpopulation of about 500,000 were mostly repatriated by 1946. The number of immigrants is not known for certain, however, since no precise census was made before or during Japanese rule. The census of 1956 counts 640,000 civilian migrants from the mainland. The size of the army was secret at the time. Taiwanese documents found much later count 580,000 soldiers. American contemporary intelligence, however, put the number at only 450,000. Additionally, some army personnel were discharged before 1956 and are therefore (or for other reasons) included in both numbers, while others were drafted locally and were not immigrants. Such considerations led scholars to the above estimate. It is noted that upper estimates of up to two or three million immigrants are commonly found in older publications.[6] Immigration on a similar scale took place in Hong Kong at the time.

The National Palace Museum in Taipei, Taiwan

As the defeated Nationalists fled to Taiwan, they stripped China of liquid assets including gold, silver, and the country's dollar reserves.[7]

The KMT also retreated with artifacts, which are kept mostly in the National Palace Museum in Taipei, Taiwan.[8]

Chiang Kai-shek's mission to take gold from China was held secretly because, according to Wu Sing-yung, the entire mission was operated by Chiang himself. Only Chiang and Wu's father, who was the head of Military Finance for the KMT government, knew about the expenditure and moving of gold to Taiwan and almost all orders by Chiang were issued verbally. Wu stated that even the finance minister had no power over the final expenditure and transfer.[9] The written record was kept as the top military secret by Chiang in the Taipei Presidential Palace and the declassified archives only became available to the public more than 40 years after his death in April 1975. It is a widely held belief that the gold brought to Taiwan were used to lay foundations for the Taiwanese economy and government.[9] Some also believe that after six months of the gold operation by Chiang, the New Taiwanese dollar was launched, which replaced the old Taiwanese dollar at a ratio of one to 40,000. It is believed that 800,000 taels of gold were used to stabilize the economy which had been suffering from hyperinflation since 1945. However, these beliefs turned out to be mistaken. According to a memoir written by Zhou Hong-tao, a long-term aide-de-camp of Chiang, the gold was consumed very fast after being brought to Taiwan and in less than two years 80% was already consumed for the funds and provisions for the troops.[10]

The National Palace Museum claims that in 1948 when China was going through its Civil War, executive director Chu Chia-hua and others (Wang Shijie, Fu Ssu-nien, Xu Hong-Bao (Chinese: 徐洪宝), Li Ji (Chinese: 李济), and Han Lih-wu) discussed shipping masterpieces to Taiwan for the artifacts' safety.[11] There are different opinions on treasures that are at Taiwan's National Palace Museum. Some in China view the relocation as looting. Others believe these treasures have been accidentally protected, and might have been lost forever due to the Four Olds campaign during the Cultural Revolution. Many historians believe that the treasure was taken to Taiwan by the Nationalists to keep it safe from the CCP. Others believe that Taiwan is still part of Chinese sovereign territory so the relocation is not an issue.[12]

KMT forces attempted to destroy industrial sites, but workers were able to stop them at many such locations.[7]

From Taiwan, Chiang's air force attempted to bomb the mainland cities of Shanghai and Nanking, but to no effect. Chiang's ground forces aimed to return to the mainland, but had no long-term success. Communist forces were left in control of all of China except Hainan Island and Taiwan.

As a whole, the Civil War had an immense impact on the Chinese people. The historian Jonathan Fenby proposes that “hyperinflation [during the Chinese Civil War] undermined everyday lives and ruined tens of millions, hampered by a poor taxation base, increased military spending and widespread corruption."[13]

Originally, the Republic of China planned to reconquer the mainland from the People's Republic. After the retreat to Taiwan, Chiang Kai-shek established a dictatorship over the island with other Nationalist leaders, and began making plans to invade the mainland.[14] Chiang conceived a top secret plan called Project National Glory or Project Guoguang (Chinese: 國光計劃; pinyin: Gúoguāng Jìhuà; lit. 'National glory plan/project'), to accomplish this. Chiang's planned offensive involved 26 operations including land invasions and special operations behind enemy lines. He had asked his son Chiang Ching-kuo to draft a plan for air raids on the provinces of Fujian and Guangdong,[14] from where many ROC soldiers and much of the population of Taiwan had origins. If it had taken place, it would have been the largest seaborne invasion in history.[15]

Context of Project National Glory

Further information: Great Chinese Famine, Great Leap Forward, and Republic of China in the Vietnam War

Chiang Kai-shek, The Man who Lost China (1952)

The 1960s saw Mao Zedong's so-called "Great Leap Forward" in mainland China lead to catastrophic famines and millions of deaths, as well as progress by the PRC towards possible development of nuclear weapons. Thus, Chiang Kai-shek saw a crisis-opportunity to launch an attack to reclaim mainland China.

At this time, the U.S. was fighting the Vietnam War. For Project National Glory to be successful Chiang Kai-shek knew he needed US military assistance. Thus he offered to help the Americans fight the Vietnam War in exchange for U.S. support conducive to take back his lost territory. The U.S. opposed and refused Chiang's suggestions. This did not stop him. Rather, Chiang went ahead with the preparations and continued to further his plan to take back their lost territory.[16]

In 1965, Chiang's plans to strike were completed. His generals and admirals planned possible dates to deploy while soldiers and field officers prepared for battle, according to the government archives.

In August 1950, the KMT held its first Central reform Committee meeting to launch the party's reforms. (1950)

After being expelled from the mainland, Chiang Kai-shek and other KMT leaders realized they had to reform the party.

Party flag and emblem of the Kuomintang; based on the Blue Sky with a White Sun, which also appears in the Flag of the Republic of China.

Initially, the party had seen public schools as a necessary instrument of assimilation and nation-building. Private schools, seen as unwanted competition, were therefore suppressed. However, as education needs on the island began to outstrip government resources, the party reevaluated their approach. Starting in 1954, private schools were not only tolerated, but backed by state funding. Simultaneously, steps were taken to secure the obedience of private schools, such as ensuring the placement of party loyalists on school boards and the passing of strict laws to control the political content of the curricula.[17]

There are opposing views on the legality of the KMT takeover of Taiwan. The Chinese government officially states that Taiwan is a province that needs to be ruled by the mainland. According to a 1955 article, "It has been charged that Chiang Kai-shek has no claim to the island because he is 'merely a fugitive quartering his army' there and besides, his is a government in exile."[18] Moreover, the Treaty of San Francisco, which was officially signed by 48 nations on September 8, 1951, did not specify to whom Japan was ceding Taiwan and Penghu. Despite this, the ROC was viewed by the vast majority of states at the time as the legitimate representative of China, as it had succeeded the Qing Dynasty, while the PRC was at the time a mostly unrecognized state. Japan was, at the time of the signing of the Treaty of San Francisco, still technically under American occupation.[19] After full independence, Japan established full relations with the ROC and not the PRC.[20]

According to Professor Gene Hsiao, "since the San Francisco Peace Treaty and the separate KMT treaty with Japan did not specify to whom Japan was ceding Taiwan and the Pescadores, the implication of the U.S. position was that legally, and insofar as the signatories of those two treaties were concerned, Taiwan became an 'ownerless' island and the KMT, by its own assent to the American policy, a foreign government-in-exile."[21]

• Xi'an Incident
• Yan Xishan
• Chiang Ching-kuo
• Lee Teng-hui
• Conservatism in Taiwan
• Wu Sing-yung
• Two Chinas
• China and the United Nations
• United Nations General Assembly Resolution 2758
• Proclamation of the People's Republic of China

• Wu, Sing-yung (2021). 父親的黃金秘密 [Father's Gold Secret]. Outskirts Press. ISBN 978-1-9772-4386-7.
• Westad, Odd Arne. Restless empire: China and the world since 1750 (2012) Online free to borrow