Zhang Yiming：The CPC-KMT Currency Struggle from 1940 to 1942

Beginning in the winter of 1940, in order to cope with the financial pressures brought about by the Guomindang government’s stopping of payments to the Eighth Route Army, the Central Committee of the CPC decided to issue currency in the Shaanxi-Gansu-Ningxia Border Region, and it carried out a policy of banning the legal tender in each base area. The Guomindang government restrained the development of the CPC's border currency by formulating countermeasures, creating military tensions, and so forth. After the outbreak of the Pacific War, the CPC issued a variety of border currencies in each base area, effectively squeezing out the legal tender. However, the Guomindang government failed to make timely improvements to its policies, and its containment of the CCP currency eventually ended in bankruptcy. By 1942, the CPC, which insisted on self-sufficiency and self-reliance, had won the currency war.