3.145 Fall and Rise of China: What was Manchukuo?

Last time we spoke about Operation Jinzhou and the defense of Harbin. In the tumultuous landscape of early 1930s China, Chiang Kai-shek hesitated to engage in combat, fearing internal factions and the looming threat of the CCP. Zhang Xueliang, commanding a substantial force, felt pressure from both the Japanese and his own government. As tensions escalated, the Kwantung Army launched a brutal campaign against Jinzhou, leading to its fall. Amidst chaos, resistance leaders like Ma Zhanshan and Ding Chao emerged, rallying against Japanese aggression, determined to protect their homeland despite limited support. In November, the Jilin Provincial Anti-Japanese Government formed under Cheng Yun, rallying over 3,000 troops led by Feng Zhanhai against Japanese forces. After several battles, including the retaking of Shulan, they faced fierce resistance but ultimately had to retreat. As the Japanese advanced, the Jilin Self-Defense Army was established, but after intense fighting, Harbin fell to the Japanese on February 6. Despite earlier victories, the Chinese resistance crumbled, leading to the establishment of Manchukuo and the end of organized resistance in Manchuria.

 

#145 What was Manchukuo?

Welcome to the Fall and Rise of China Podcast, I am your dutiful host Craig Watson. But, before we start I want to also remind you this podcast is only made possible through the efforts of Kings and Generals over at Youtube. Perhaps you want to learn more about the history of Asia? Kings and Generals have an assortment of episodes on history of asia and much more  so go give them a look over on Youtube. So please subscribe to Kings and Generals over at Youtube and to continue helping us produce this content please check out www.patreon.com/kingsandgenerals. If you are still hungry for some more history related content, over on my channel, the Pacific War Channel where I cover the history of China and Japan from the 19th century until the end of the Pacific War.

 

To start off this episode I want to turn back to our old friend Ishiwara Kanji. Ishiwara's ambition to dominate Manchuria was primarily a means to an end: to secure resources and a strategic position against America. After gaining control of Manchuria, Ishiwara shifted his focus toward another objective: fostering racial cooperation among Asian peoples. His vision for Manchukuo, or rather his interpretation of it, served as a launching pad for his idea of an East-Asian league, rooted firmly in his Final War theory. During his time in Manchuria in 1932, this Pan-Asian concept of Manchukuo distinguished him from many of his colleagues in the Kwantung Army and marked him as unconventional within the Imperial Japanese Army .

 

As many of you may know, Manchukuo was a fraudulent puppet state designed to legitimize Japan’s takeover of Manchuria. The Japanese high command aimed to disguise their invasion of this part of China as an indigenous independence movement. To achieve this, they installed Puyi, the last Qing emperor, as the figurehead of Manchukuo while promoting ideals of racial harmony. This facade was necessary, as controlling a population that harbored resentment towards them required some effort to win their favor. Fortunately for the Japanese, there were factions in Manchuria that actually desired independence. This region was the heartland of Nurhaci’s Manchu people—yes that guy we spoke about all the way back in the beginning of this podcast. The Japanese had considerable leverage, framing their actions as a noble revival of the Qing dynasty or a restoration of power to the Manchu. Additionally, there was a significant Mongolian presence, and Inner Mongolia would soon play a role in these events. Manchuria was reluctantly drawn into the nationalist movement, and it shared Japan's apprehension towards the USSR, having faced its own struggles against it for a long time. Moreover, a large population of Japanese settlers in Manchuria welcomed the takeover, as the Zhang Xueliang regime had not been particularly accommodating to them, implementing various discriminatory measures. Zhang Xueliang's alliance with the Nationalists effectively sealed the fate of the Japanese settlers, who anticipated expulsion.

 

As military operations progressed, Ishiwara and Itagaki convened with other prominent Kwantung officers to strategize control over Manchuria. They met with Officer Katakura, Chief of Staff Miyake, and Dohihara Kenji from the Mukden special service, reviewing a prior plan by Colonel Dohihara for a multi-ethnic autonomous nation in Manchuria. This entity was to be led by Puyi, possessing complete autonomy in internal matters, while defense and foreign relations would be managed by Japan. Ishiwara drafted the plans by September 22nd, which were sent to Tokyo on October 2nd. Although Tokyo's high command disapproved of the objectives, they collaborated with the Kwantung Army for five months to establish a new state based on two main principles: the purported indigenous movement for Manchurian independence and the administrative framework for Kwantung Army control.

 

The Kwantung Army proceeded to utilize Manchuria's traditional structure of local self-governing bodies. Throughout 1931, they bribed, persuaded, and threatened local leaders to foster a movement for autonomy against the Kuomintang hardliners. One of their first initiatives was the establishment of the "Jichi Shidobu Self-Government Guidance Board," responsible for coordinating regional independence movements in collaboration with the Kwantung Army to, as Miyake put it, "guide Manchuria to self-government." The board was headed by Yu Ch’ung-han, a Mukden elder statesman educated in Japan and a former advisor to Zhang Zuolin. It comprised 20 Japanese and 10 Manchurian members. Such organizations attracted Japanese civilians in Manchuria, who supported the so-called multiracial political structure, as they could exploit it for their own interests. The Kwantung Army heavily promoted slogans like “racial harmony, racial equality, and the righteous way.” Their control over Manchuria was solidified by placing Japanese advisors in all governmental bodies with ultimate veto power, ensuring that everything was effectively under Japanese control. While it seemed that Ishiwara's vision was unfolding as planned, by 1933, he became a fierce critic of the very system he had helped establish.

 

It’s quite ironic that the man who played a key role in initiating the conquest of Manchuria would be unable to exert his influence in shaping Manchukuo. While Ishiwara Kanji served as the operations officer officially responsible for planning and executing military operations to capture Manchuria, the political arrangements for the new state fell outside his control. Nevertheless, Ishiwara was very vocal about his views on the development of Manchukuo, strongly advocating for racial harmony. He persistently urged his colleagues that the economic growth of Manchukuo should embody the spirit of racial cooperation. Ishiwara believed that the economic interests of Manchukuo would naturally align with those of the Kwantung Army, as both aimed for the unity of Asia against the West. He was gravely mistaken. Ishiwara was driven by his theory of a final war, and everything he did was aimed at preparing for it; thus, his fixation on racial harmony was part of this broader strategy.

 

In March 1932, the self-government guidance board was dissolved, transferring its functions and regional organizations to newly established bureaus within the Manchukuo government. In April, an organization called the Kyowakai (Concordia Association) was formed, led by Yamaguchi Juji and Ozawa Kaisaku, with the goal of promoting racial harmony. This initiative received support from members of the Kwantung Army, including Ishiwara, Itagaki, and Katakura. The Kwantung Army invested heavily in the organization, which quickly gained traction—at least among the Japanese. General Honjo expressed concerns about the organization’s potential political influence in Manchukuo; he preferred it to remain an educational entity rather than evolve into an official political party. By "educational role," he meant it should serve as a propaganda tool for the Kwantung Army, allowing them to exert influence over Manchukuo without significant commitment.

 

But to Ishiwara the Concordia Association was the logical means to unify the new nation, guiding its political destiny, to be blunt Ishiwara really saw it should have much more authority than his colleagues believed it should. Ishiwara complained in August of 1932, that Manchuria was a conglomerate of conflicting power centers such as the Kwantung army, the new Manchukuo government, the Kwantung government, the Mantetsu, consular office and so on. Under so many hats he believed Manchukuo would never become a truly unified modern state, and of course he was one of the few people that actually wanted it to be so. He began arguing the Kwantung army should turn over its political authority as soon as possible so “Japanese of high resolve should hasten to the great work of the Manchurian Concordia Association, for I am sure that we Japanese will be its leaders. In this way Manchukuo will not depend on political control from Japan, but will be an independent state, based on Japanese Manchurian cooperation. Guided by Japanese, it will be a mode of Sino-Japanese friendship, an indicator of the present trends of world civilization” Needless to say the Concordia Association made little headway with the Chinese and it began to annoy Japanese leaders. The association gradually was bent into a spiritless propaganda and intelligence arm of the IJA, staffed largely by elite Japanese working in the Manchukuo government. 

Ishiwara started utilizing the Concordia Association to advocate for various causes, including the return of leased territories like the Railway zone, the abolition of extraterritoriality, and equal pay for different races working in Manchukuo—efforts aimed at fostering racial harmony. However, this advocacy clashed significantly with the Japanese military's interests, damaging Ishiwara's reputation. As a result, the staff of the Kwantung Army began to shift dramatically, leaving Ishiwara increasingly isolated, except for Itagaki and a few loyal supporters. The higher-ups had grown weary of the disruptive Concordia Association and gradually took control, ensuring that discussions about concessions were halted. In August 1932, Ishiwara received a new assignment, and he appeared eager to leave Manchuria. Now that finishes off our story of Ishiwara, he will return later on in future episodes. Again if you want a full sort of biography on him, check out my youtube channel or Echoes of War podcast where I have a 4 part series on him. 

 

Now I want to get more into the specifics of what exactly was this new state known as Manchukuo? During the mayhem that was the invasion of Manchuria, by October 6th of 1931, the Japanese cabinet had finally relented and decided to no longer interfere with the establishment of a new regime in Manchuria and Inner Mongolia. The remaining disagreement between the Japanese government, Tokyo General HQ and the Kwantung army was not whether or not to establish a new regime, but whether or not to promote the establishment of a new regime. Japan obviously did not want to break the Washington system established by the treaty of Versailles. Yet they of course wanted to expand Japanese interest in Manchuria. So it was to be a delicate game of chess balancing their interests in coordination with the western powers. This was specifically why Prime Minister Wakatsuki Reijiro had opposed direct participation of Japanese soldiers in the establishment of a new regime, because clearly it would open Japan to condemnation from the west. 

 

Over the course of the invasion, Japan managed to occupy the 3 northeastern provinces of Liaoning, Jilin and Heilongjiang by establishing pro-japanese regimes within each under Zhang Shiyi, Xi Qia and Ma Zhanshan respectively. On September 20, 1931, Jianchuan proposed the establishment of a Japanese-backed regime led by Puyi during a meeting with Honjo Shigeru, the commander of the Kwantung Army. Obviously Jianchuan was in league and under the influence of our old friend Doihara. Two days later, on September 22, the Kwantung Army General Staff developed the "Solution to the Manchuria-Mongolia Issue," based on Doihara's suggestion to create a Five-Nation Republic in Manchuria and Mongolia, with Japan as the "leader." The plan outlined the establishment of a new regime under Puyi, supported by Japan, to govern the 3 northeastern provinces and Mongolia. The new regime would entrust Japan with national defense and diplomacy, as well as the management of key transportation and communication infrastructure. It also proposed appointing Xi Qia, Zhang Haipeng, Tang Yulin, Yu Zhishan, and Zhang Jinghui to oversee garrisons in locations such as Jilin, Taonan, Rehe, Dongbiandao, and Harbin. To execute this plan, the Japanese Kwantung Army, led by Chief of Staff Itagaki, utilized local intelligence agencies and some mainland ronin to initiate a so-called strategic operation. To facilitate the plan's implementation, the Kwantung Army informed the commander of the Japanese Army in Tianjin that afternoon, requesting immediate "protection" for Emperor Xuantong.

 

After the Kwantung Army took control of Jinzhou, it believed the moment was right to establish the hastily assembled puppet regime. To secure the full backing of the Japanese government and the military leadership, the Kwantung Army decided to send Itagaki back to Tokyo for negotiations. At that time, Itagaki had a fairly detailed plan to present. The proposed "Manchuria-Mongolia Central Government" aimed to create a centralized power structure that would be distinct from mainland China, effectively becoming a truly "independent" nation. They intended to appoint local collaborators as officials at all levels and were prepared to fabricate "public opinion" to obscure global perceptions of Japan's scheme to establish this regime. This of course was highly influenced by the announcement from the League of Nations that they would be investigating the entire incident in what would become known as the Lytton Commission.  Thus they believed it was essential to set up the regime before the League of Nations investigation team arrived in Manchuria. They understood that if these actions were "carried out directly by Japan," they would violate both the Nine-Power Treaty and the League of Nations. However, they reasoned that if the Chinese initiated the separation themselves, it would not contradict the principles of those treaties.

 

The Kwantung Army established puppet organizations using collaborators, starting with the "Liaoning Provincial Local Maintenance Association," which was formed on September 25, 1931. The association's chairman, Yuan Jinkai, represented the civil governance faction of the Fengtian clique. After the First Zhili-Fengtian War, he was appointed governor of Fengtian Province by the Zhili government, which led to his unpopularity with Zhang Zuolin. At the time of the incident, he was already retired. The association's vice chairman, Kan Chaoxi, had previously served as the governor of Rehe and commander of the Third Division. He fell out of favor with Zhang Zuolin due to his involvement with Guo Songling and subsequently retired. A common characteristic of the puppet organizations created by the Kwantung Army is that they always included Japanese advisors, regardless of their level. The "Liaoning Provincial Local Maintenance Association" was no exception, hiring Kanai Shoji, head of the health section of the local department of the Manchurian Railway and chairman of the Manchurian Youth League, as its top advisor. In the Japanese-occupied Fengtian, this highest advisor effectively became the leader of the maintenance association. While the association was ostensibly responsible for maintaining local order, it actually functioned as a tool for Japan to establish a puppet regime. Recruiting discontented officials and creating puppet institutions was just a minor part of the Kwantung Army's strategy to set up a puppet regime. The crucial factor in this endeavor was gaining the support of influential local warlords. To achieve this, the Japanese Kwantung Army, along with various intelligence agencies, employed a mix of soft and hard tactics, including coercion and incentives. As a result, they successfully pressured figures such as Yu Zhishan, Zhang Haipeng, Zhang Jinghui, Xi Qia, Zang Shiyi, and Ma Zhanshan to defect to the Japanese forces.

 

Following the Mukden Incident, former Qing nobles who had hoped to restore the Qing Dynasty believed the moment had arrived. Xi Qia, a member of the former Qing royal family and the Chief of Staff of the Jilin Provincial Army at the time, took advantage of the Jilin governor's absence due to his mother's funeral to open the gates of Jilin and surrender to Japan. This made Xi Qia the first Chinese official to collaborate with the Japanese invaders since their invasion of China. He sent a secret letter to the abdicated Qing emperor Puyi, urging him to return to "the birthplace of the ancestors, restore the Qing Dynasty, and rescue the people from their suffering," with the backing of "friendly nations". Xi Qia and the former Manchu nobles, who had elevated him to acting governor of Jilin Province, proposed to the Japanese to invite Puyi to the Northeast to establish a monarchy. The Japanese Kwantung Army had already identified Puyi as a suitable puppet leader. After the 15 year war had concluded, under interrogation, Shirono Hiroshi confessed that the reason why the Japanese chose Puyi was: First, Puyi had “no connection with the Kuomintang in mainland China”; Secondly, "some old classes in the Northeast and Mongolia still have traditional yearnings for the Qing Dynasty"; Third, “the peasants in general… seemed to welcome the kingly political system implemented by the Aisin-Gioro family.”

 

On November 8th, 1931, Doihara orchestrated the "Tianjin Incident" and covertly removed Puyi from his home in the Japanese Concession in Tianjin. They traveled through Dagukou, Yingkou, and Lushun before arriving in Fushun. By February 5th, 1932, the Japanese army had taken control of Harbin, stabilizing the situation in North Manchuria. Afterwards the Kwantung Army Headquarters organized a series of "National Construction Staff Meetings" to plan for a "National Construction Conference" involving collaborators. On February 16th, leaders from the Northeast provinces, including Zhang Jinghui, Xi Qia, Ma Zhanshan, Zang Shiyi, Xie Jieshi, Yu Chonghan, Zhao Xinbo, and Yuan Jinkai, gathered for the "Northeast Political Affairs Conference" at the Yamato Hotel in Shenyang. The meeting was led by Honjo Shigeru, the commander of the Kwantung Army. They decided to invite Puyi to rule the puppet state of "Manchukuo" and assigned government positions to the attendees. Notably, Itagaki Seishirō was appointed as the head of the Fengtian Special Agency and the chief advisor to the Military and Political Department of Manchukuo. 

 

On February 18th, the "Northeast Administrative Committee" issued a "Declaration of Independence," stating: "From now on, we declare that the regions of Manchuria and Mongolia will be separated from the Chinese central government. Based on the free choice and appeal of the residents of Manchuria and Mongolia, these regions will achieve complete independence and establish a fully independent government." On February 23rd, Itagaki met with Puyi in Fushun to inform him that he would be the "ruler" of Manchukuo. Although Puyi had hoped to reclaim the throne, he was disappointed with the "ruler" designation but felt compelled to accept it. On the 29th, the "All-Manchuria National Construction Promotion Movement Conference" passed a resolution urging Puyi to take on the role of ruler. In February, the Japanese army began its offensive against Rehe. Meanwhile, the League of Nations declared that it would not recognize Manchukuo.

 

On March 1st, Japan orchestrated the establishment of "Manchukuo," appointing Puyi as its "ruler" under the reign title "Datong." China firmly rejected the notion of Manchukuo's "independence" and lodged a strong protest against Japan on the same day. On March 8th, Puyi officially declared his inauguration as the "ruler of Manchukuo" in Xinjing. Concurrently, officials were appointed to various "offices," "ministerial positions," and "ministries," leading to the formal establishment of Manchukuo. The following day, Puyi conducted an inauguration ceremony, and on March 10th, a secret agreement was signed with Japan. Japanese Ambassador to Manchuria, Nobuyoshi Mutō, and "Prime Minister" Zheng Xiaoxu signed the Japan-Manchuria Agreement in Changchun, with the Japanese government issuing a statement recognizing "Manchukuo."

 

In October of 1932, the League of Nations Assembly released the Lytton Commission Report. 

Alarmed by the Mukden incident, the League of Nations had dispatched a group of investigators, led by British statesman Lord Lytton, to uncover the truth of what was going on. The commission traveled to Manchuria, gathering testimonies and examining evidence. Their task was daunting: Japan insisted its actions were defensive, protecting its economic interests and citizens. Meanwhile, China accused Japan of orchestrating the railway incident as an excuse for invasion. Months later, the Lytton Report emerged, painting a balanced yet damning picture. 

 

On February 24, the commission concluded that the "Mukden Incident" was staged by Japanese troops. It condemned Japan’s actions as a violation of Chinese sovereignty, rejecting their claims of self-defense. Moreover, the report did not recognize the puppet state of Manchukuo, established by Japan in Manchuria. Instead, it called for Manchuria’s return to Chinese control under an arrangement respecting regional autonomy. Though praised for its fairness, the report lacked teeth. Later on the League urged Japan to withdraw, but Japan walked out of the League instead, solidifying its grip on Manchuria. 

 

Manchukuo’s territory would span the former provinces of Liaoning, Jilin and Heilongjiang, excluding the Kwantung Leased Territory. It would also gradually incorporate eastern parts of Inner Mongolia, Chengde City and Rehe Province. The 1932 "Japan-Manchuria Protocol" established that the sovereignty of the Kwantung Leased Territory belonged to "Manchukuo." This entity acknowledged the Qing Dynasty's agreement to lease the Guandong Territory, which includes Lushun and Dalian, to Japan. As a result, the Guandong Territory remained under direct Japanese control and was not included in the "administrative division of Manchukuo." By 1934 Manchukuo was divided into 14 provinces, 2 special cities and 1 special district: Andong Province , " Fengtian Province ", Jinzhou Province , Jilin Province , Rehe Province , Jiandao Province , Heihe Province , Sanjiang Province , Longjiang Province , Binjiang Province, Xing'an East Province , Xing'an West Province , Xing'an South Province , Xing'an North Province , Xinjing Special City , Harbin Special City , and North Manchuria Special District. By 1939 this would increase to 19 provinces and 1 special city.

 

Politically, Puyi served as the nominal head of state for "Manchukuo." He took on the role of ruler on March 8, 1932, adopting the reign title "Datong." On March 1, 1934, Puyi conducted a "coronation ceremony" in Xinghua Village, located south of "Xinjing," and renamed "Manchukuo" to the "Great Manchurian Empire." In this capacity, Puyi was designated as the "emperor," with the reign title "Kangde." "Manchukuo's administrative structure was led by the 'State Council,' headed by the 'Premier.' This pseudo 'State Council' included the 'Ministry of Foreign Affairs,' 'Ministry of Civil Affairs,' 'Ministry of Finance,' 'Ministry of Justice,' 'Ministry of Industry,' 'Ministry of Transportation,' 'Ministry of Culture and Education,' and 'Ministry of Military Affairs.' The 'Ministry of Finance' was later renamed the 'Ministry of Economy,' while the 'Ministry of Military Affairs' retained its name. The 'Ministry of Industry' was split into the 'Ministry of Agriculture' and the 'Ministry of Labor,' and additional departments like the 'Ministry of Health and Welfare' were established. Each ministry was led by a 'minister,' but real power rested with the Japanese vice ministers. The head of the 'General Affairs Department of the State Council,' who was also Japanese, effectively served as the 'Premier.' This role was first held by Komai Tokuzo, followed by Hoshino Naoki and Takebe Rokuzo. Every Tuesday, the Japanese vice ministers convened to discuss and make decisions on 'national' policies and various specific matters in a meeting known as the 'Fire Tuesday Meeting.'"

 

The legislative assembly of "Manchukuo" was known as the "Legislative Yuan," with Zhao Xinbo serving as its first "President." However, true legislative authority rested with the Kwantung Army. Manchukuo operated without a formal constitution, instead relying on a series of special laws. The advisory group was referred to as the "Senate," led by a "Speaker," with Zang Shiyi being the inaugural holder of that position. The highest judicial authority in puppet Manchukuo was the "Supreme Court," with Lin Qi as the first "Supreme Justice" and Li Pan serving as the "Supreme Prosecutor General." The judicial agency was the "Imperial Household Agency," headed by Xi Qia.

 

Following the September 18th Incident, Zhang Xueliang maintained a policy of "non-resistance." Most of the former Northeastern Army was "ordered" to retreat south of Shanhaiguan without engaging in combat. Those who could not withdraw were split into two factions: one group, motivated by national integrity and a shared animosity toward the enemy, rose to fight against Japan and became a significant part of the renowned Northeast Volunteer Army. The other faction consisted of traitors who surrendered, acknowledged the enemy as their leader, and acted as the enforcers and thugs for the Japanese invaders. These collaborators and the forces they commanded formed the backbone of the puppet Manchukuo army. Simultaneously, they recruited defectors and traitors, as well as bandits and social miscreants, thereby bolstering the ranks of the puppet Manchukuo military. They were under the influence of the highest advisors from the puppet Manchukuo Military and Political Department, which was made up of Japanese military officials. Directly controlled by the Kwantung Army, they served as vassals and accomplices of Japanese imperialism.

 

"The State Council of Manchukuo" served as the governing body of the puppet state. It functioned as the highest political authority in the region. Structurally, it operated under the direct control of the head of state, Puyi. However, in practice, the State Council was heavily influenced by the Japanese Kwantung Army, with many key positions occupied by Japanese officials. The breakdown of power is as follows:

1. "Head of State": "Emperor" ( before the transition to the imperial system , the ruler)

2. "Emperor's direct agencies": Imperial Household Agency - Shangshufu - Senate - Military Attaché Office - Military Advisory Council - Sacrifice Office

3. "Yuan": State Council - Courts - Legislative Yuan - Control Yuan

4. "National Army": Royal Guards - River Defense Fleet - Flying Squadron - Xing'an Army - Jiandao Special Forces

5. "Police": Maritime Police Force - Security Bureau

6. Other "agencies": General Affairs Department

(not official) External Group: Concord Society

 

To fulfill its goal of annexing Northeast China, Japan initiated a "national policy immigration" campaign under the guise of development, intending to relocate 1 million households and 5 million Japanese citizens from Japan to Northeast China over two decades. Additionally, around 2 million Koreans were moved to the region as political immigrants. In April 1936, the Japanese Kwantung Army convened an "immigration" meeting in Changchun, where they developed the "Manchuria Agricultural Immigration Million Households Migration Plan." By September 1944, there were 1,662,234 Japanese immigrants (including early settlers) residing in various areas of Northeast China. Following 1945, most Japanese immigrants were repatriated, notably during the large-scale repatriation in Huludao, although the issue of Japanese orphans also arose.

 

After the September 18th Incident, in response to the invasion by Japanese fascists, people from all nationalities and professions in China resisted fiercely. The Japanese fascists employed military forces, police, and special repressive agencies to brutally suppress the anti-Japanese movement, inflicting significant suffering on the Chinese populace. In addition to collaborating with the Kwantung Army for extensive military encirclement and suppression, the Kwantung Military Police Force oversaw other repressive agencies during peacetime and became the primary force behind the implementation of white terror.

 

As for its economy, Manchuria is rich in natural resources. By 1936 its coal reserves were about 3 billion tons, iron reserves roughly 4 billion and had other minerals including Gold, Magnesite, Bauxite, Oil shale, Diamonds. Its forestry and fishery industry was quit rich as well. During the Zhang Zuolin era, Manchuria’s industrial base was already well-developed, and Japan required a robust military industry to support its aggressive war efforts. Steel production was primarily located in Anshan and Benxi, while the chemical industry was centered in Liaoyang. The coal industry was concentrated in Fushun, Benxi, and Fuxin. Oil shale and synthetic fuel production were mainly found in Fushun and Jilin. Magnesite mining took place in Haicheng and Dashiqiao, and hydropower generation was focused in Jilin and along the Yalu River. Fengtian (now Shenyang) served as the hub for machinery, arms, and aircraft industries, whereas light industries, including textiles and food production, were concentrated in cities like Dalian, Dandong, Harbin, and Qiqihar.

 

The industrial sector of the puppet state was largely controlled by the South Manchuria Railway Company. Following the establishment of the puppet state, investments from various Japanese conglomerates rapidly flowed into Northeast China. After 1937, the puppet state implemented an economic control policy for the industrial sector, adhering to the principle of "one industry, one company," which led to the creation of monopoly companies for each industry. Under this framework, the South Manchuria Railway transferred its industrial operations and reorganized them into a massive conglomerate called the "Manchuria Heavy Industry Development Corporation ," which monopolized all steel, coal, chemical, and electric power industries in the region. Additionally, over 40 specialized companies were established, including the "Manchuria Electric (Telephone and Telegraph) Company," "Manchuria Machinery Manufacturing Company," "Manchuria Mining Company," "Manchuria Airlines," "Manchuria Artificial Oil Company," "Manchuria Textile Company," "Manchuria Wool Textile Company," "Manchuria Chemical Industry Company," "Manchuria Forestry Company," "Manchuria Gold Mining Company," "Manchuria Livestock Company," "Manchuria Fisheries Company," "Manchuria Tobacco Company," "Manchuria Agricultural Commune," and "Manchuria Development Commune." These companies were jointly established by Japanese investors and the "Manchukuo" government, with profits shared according to their respective investments. In case of losses, the Manchukuo government guaranteed 10% of the profits for Japanese investments.

 

To transform Manchuria into a base for its aggressive expansion against China and the Pacific War, Japan imposed strict control and extensive exploitation of the region's economy and resources. The primary focus of this control and exploitation was on mineral resources such as coal, iron, and oil, as well as essential industries. Under the intense plundering and strict oversight of Japanese imperialism, Northeast China's economy rapidly became colonial, leading to severe hardships for its people. Due to Japan's stringent economic control policies and large-scale colonial exploitation, the local industry and mining sectors suffered, national industries declined, and the rural economy collapsed, resulting in a swift transformation of Northeast China into a colony. To maximize the extraction of colonial resources, the Japanese invaders minimized the consumption levels of the local population. Since 1935, they implemented comprehensive distribution controls on vital strategic materials and everyday necessities. This distribution control policy plunged the people of Northeast China into extreme poverty and suffering.

 

The 1936 resource survey report from the State Council of the puppet Manchukuo indicated that the region had an arable land area of 40 million hectares (equivalent to 4 billion mu), with 25 million hectares classified as cultivated land. Additionally, the forested area covered 170 million hectares. The annual production figures included 2.5 million tons of soybeans, 2 million tons of wheat, 700,000 tons of rice, 1 million tons of millet, 8 million tons of sorghum, 5 million tons of corn, 600,000 tons of other grains and beans (excluding soybeans), 300,000 tons of cotton, and 160,000 tons of tobacco. The livestock population consisted of 4 million horses, 3 million cattle, 30 million sheep, and 40 million pigs. The total annual grain output in the puppet Manchukuo was approximately 20 million tons. Of this, around 7.5 million tons were consumable grains for local farmers throughout the year, while 4 million tons were designated as seed grains. Furthermore, the region was responsible for supplying rations to Japanese and Korean immigrants. In compliance with the demands of the Kwantung Army, the puppet Manchukuo was obligated to deliver over 1 million tons of grain to Japan annually. The grain collection process commenced in mid-August and concluded at the end of November, imposing a significant burden on farmers. Japanese colonists were exempt from agricultural taxes and received monthly rations.

 

The puppet state of Manchukuo had a “military force” known as the “Manchukuo Army.” It was divided into three components: "rear security" and "law and order maintenance," all under the control of the Japanese Kwantung Army. Initially, its military capabilities were limited, with the Kwantung Army handling most combat operations. However, as the main forces of the Kwantung Army shifted south and manpower became scarce, the anti-Japanese armed groups in Northeast China were suppressed and weakened. Consequently, the puppet Manchukuo began to assume more military responsibilities on its own, with many of its soldiers being Korean Japanese recruited from the Korean Peninsula. The entire Northeast was segmented into eleven military control zones, each led by an individual known as a commander. The military authority of the puppet state of Manchukuo was under the control of the Japanese Kwantung Army. Any troop movements, training exercises, equipment modifications, or personnel changes required approval from the Kwantung Army Headquarters. The puppet Manchukuo Army had nine ranks: general, colonel, and lieutenant. Upon graduating from the military academy, individuals were promoted to second lieutenant. After two years, they advanced to first lieutenant, and then to captain after another three years. Following that, a captain would be promoted to major after three years, then to lieutenant colonel after another three years. After four years, a lieutenant colonel would become a colonel, who would then be promoted to major general after four years. After three additional years, a major general could rise to the rank of lieutenant general, and finally, after four years, a lieutenant general could achieve the rank of general. The highest military rank was general, which was a lifetime appointment. Above the rank of general was an honorary title modeled after the Japanese marshal. Individuals such as Zhang Jinghui, Zhang Haipeng, Yu Zhishan, and Ji Xing were conferred the title of general. Thus was born a puppet state that would contribute to the 15 year war in Asia.

 

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Yes perhaps this episode was a bit on the boring side of things, but its important to take a critical look at what exactly Manchukuo was. The new puppet state would be used for various means during the 15 year war and would ultimately be the crown jewel in a long list of conquered territories by the Japanese Empire.