Economic Policies in Shanghai
After the Second Sino-Japanese War and during the Chinese Civil War, Chiang Ching-kuo briefly served as a liaison administrator in Shanghai, trying to eradicate the corruption and hyperinflation that plagued the city. He was determined to do this because of the fears arising from the Nationalists' increasing lack of popularity during the Civil War. Given the task of arresting dishonest businessmen who hoarded supplies for profit during the inflationary spiral, he attempted to assuage the business community by explaining that his team would only go after big war profiteers.
Chiang Ching-kuo copied Soviet methods, which he learned during his stay in the Soviet Union, to start a social revolution by attacking middle class merchants. He also enforced low prices on all goods to raise support from the Proletariat.
As riots broke out and savings were ruined, bankrupting shopowners, Chiang Ching-kuo began to attack the wealthy, seizing assets and placing them under arrest. The son of the gangster Du Yuesheng was arrested by him. Ching-kuo ordered Kuomintang agents to raid the Yangtze Development Corporation's warehouses, which was privately owned by H.H. Kung and his family, as the company was accused of hoarding supplies. H.H. Kung's wife was Soong Ai-ling, the sister of Soong May-ling who was Chiang Ching-kuo's stepmother. H.H. Kung's son David was arrested, the Kung's responded by blackmailing the Chiang's, threatening to release information about them, eventually he was freed after negotiations, and Chiang Ching-kuo resigned, ending the terror on the Shanghainese merchants.
Read more about this topic: Chiang Ching-kuo
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