In 1940, China had been divided into 10 zones which were mostly under GMD control. In October 1945, Xinjiang and Tibet were some of the only provinces not under CCP control.
Xinjiang was controlled by the Soviets. In October 1949, the CCP established a communist provincial government. However, pockets of resistance remained until 1954.
Oldliberatedareas = those with a communist presence before 1949
New Liberated areas = recently fallen under communist control
Peoplesdemocraticgovernments were given to the Old Liberated areas e.g Manchuria
In Old Liberated areas, the CCP had strong peasant support and had established control over the local government.
New Liberated areas were placed under Military Control Commissions.
The New Liberated Areas were mostly South of the Yangtze river and victory had to be achieved by conquest. There were pockets of resistance from GMD support; labelled as bandits by Mao.
Operations against bandits continued past October 1949.
Bandits = Old GMD supporters
The Red Army had stripped factory machinery and taken it to the USSR.
Industrial production in 1949 was at 44% of 1937 levels.
Young men who had left agricultural areas to fight took local food supplies for themselves.
Food production in 1949 was 30% below it's 1937 level.
The country was facing food shortages and there were already pockets of emerging hardship in China
Foreign trade had declined and so the port cities of Shanghai, Guangzhou and Tianjin had decayed.
The rampant inflation of the final years had led to economic devastation. The wealthy had moved money offshore to Hong Kong and Taiwan. This led to a shortage of capital causing further economic devastation.