Economic Relations Between the Soviet Union and China From 1937 to 1949 (From the Japanese Invasion of China Proper to the Establishment of the Chinese People’s Republic)

The authority of the Soviet Union in the field of international affairs was considerably enhanced at the same time. The invasion of North China by Japanese troops in July 1937 modified the Chinese situation. Sino-Soviet economic relations were considerably broadened by the loan agreements and the commercial treaty. The German attack on the Soviet Union on 22 June 1941 interrupted the Soviet Union's normal economic relations with many capitalist countries. Sino-Soviet relations deteriorated and economic ties were broken off when reactionary forces gained the ascendancy in China, the Chinese government lost contact with the democratic movement and its foreign policy served foreign interests. The increase in the exports of cattle, grain, wool, undressed leather and other agricultural produce and game was made possible by achievements in economic development. The agricultural production of Sinkiang increased considerably in all the major items in 1939-1940.